Europe: Stocks jump at open

EUROPEAN stocks extended gains at the open on Tuesday (Oct 4) after gains elsewhere, as weak US data tempered Federal Reserve rate hike fears.

London’s benchmark FTSE 100 index rallied 1.4 per cent to 7,002.51 points compared with Monday’s closing level.

In the eurozone, Frankfurt’s DAX index won 1.9 per cent to 12,442.11 points and the Paris CAC 40 jumped 2.3 per cent to 5,926.20.

“Weaker-than-expected manufacturing data from the US was taken as a signal that rising interest rates may be having some effect on cooling demand for goods,” said Interactive Investor analyst Richard Hunter.

“This in turn led to hopes of a Federal Reserve pivot, even though the spectre of inflation remains firmly at the top of their stated to-do list.” AFP