Europe: Shares extend rally on ECB boost

[PARIS] European shares rose in early trade on Friday, gaining ground for the seventh consecutive session, as investors cheered the European Central Bank's decision to buy government bonds.

At 0806 GMT, the FTSEurofirst 300 index of top European shares was up 0.8 per cent at 1,464.69 points, a seven-year high.

Cyclical stocks such as carmakers featured among the biggest gainers again, with BMW up 2.3 per cent and PSA Peugeot Citroen up 2.2 per cent.

Renault Nissan Chief Executive Carlos Ghosn upgraded his European car market growth forecast after the ECB unveiled its QE programme.

Mr Ghosn told participants at the Davos World Economic Forum that he now expects Europe's car market to grow by at least 2 per cent in 2015, against 1-2 per cent previously.

REUTERS