Europe: VW climbs as European shares rise, but Ericsson slumps

[LONDON] European shares rose on Thursday, with carmaker Volkswagen among top performers, as expectations that the European Central Bank (ECB) would reinforce its ultra-loose monetary policy stance propped up stocks.

The pan-European FTSEurofirst 300 index advanced 0.1 per cent while the euro zone's blue-chip Euro STOXX 50 index rose 0.3 per cent.

The ECB is widely expected to hold interest rates unchanged at record lows, but ECB head Mario Draghi is likely to reinforce his support for its current ultra-loose monetary policy measures, which have provided an element of support for European stocks even in the face of weak European and global economic data.

Shares in Volkswagen rose 5.3 per cent after sources told Reuters that VW and US officials had reached a framework deal under which the automaker would offer to buy back almost 500,000 diesel cars that used sophisticated software to evade US emission rules.

However, shares in Ericsson slumped 9 per cent after the Swedish mobile telecom equipment maker posted first-quarter sales and operating profit below market expectations.

REUTERS