Europe: Stocks rise, London lifted by economic rebound

[LONDON] Europe's major stock markets advanced in opening deals on Friday as investors tracked the Ukraine conflict and digested a modest rebound in the UK economy.

Frankfurt's DAX index added 0.4 per cent to 13,495.16 points and the Paris CAC 40 also added 0.4 per cent at 6,230.77, despite Ukraine-driven losses in Asia.

Outside the eurozone, London's FTSE 100 gained 0.8 per cent to 7,158.73 points following news of rebounding UK growth.

Britain's economy expanded in January as Omicron coronavirus curbs were lifted, official data showed Friday, but analysts warned that the Ukraine conflict clouds the outlook.

Gross domestic product (GDP) grew 0.8 per cent in January, the Office for National Statistics revealed.

That more than reversed a 0.2-per cent decline in December.

"While UK GDP rose ... in January as the impact of the Omicron wave eased, growth momentum is likely to be derailed by the conflict in Ukraine," cautioned KPMG economist Yael Selfin.

"Higher and more volatile commodity prices and shortages of key raw materials" will hit production and fuel even higher inflation, she warned. AFP