European stocks extend global rebound

Major European stock markets posted sharp rises Tuesday, mirroring earlier Asian gains, as investors continued to show resilience after Friday's deadly terror attacks in Paris.

London's FTSE 100 ended the day 2.0 percent higher despite data showing negative British inflation for October.

The French capital's benchmark CAC 40 index ended the day 2.8 percent higher and it was the same story in Germany as the DAX 30 index advanced 2.4 percent.

"It?s clear that, at least for now, the majority of stocks globally remain unfazed by last week?s terrorist attacks in Paris," said analyst Tony Cross at traders TrustNet Direct.

The region's equity markets had been largely flat Monday after plunging the previous week on global growth fears.

"Markets held up impressively well in the immediate aftermath of the Paris attacks and the worst weekly decline since August," added CMC Markets analyst Jasper Lawler.

"The thinking goes that, if markets do not go down after a big weekly drop and a terrorist attack, then the only alternative must be to go up."

The only faller in London was no-frills airline Easyjet, whose share price dived 4.0 percent to 1,710 pence despite news of it posting record annual profits for a fifth straight year.

The carrier's shares sank as investors expressed concerns over the impact of the terror attacks on both the travel and leisure sectors.

However, all other London share prices pushed higher.

While Friday's carnage in Paris, which left 129 people dead, fuelled fears in the region about the effects on the already troubled European economy, confidence was buoyed by a defiant reaction around the world.

"It?s a sign of the times how easily markets can digest such geopolitical horrors and demonstrate such resilience in the face of atrocity and stock market gains comes in spite of lingering worries about a slowing China (economy) and the dollar hitting new highs," said analyst Mike van Dulken at Accendo Markets.

- Euro dives -

The European single currency meanwhile slid to a seven-month low in Paris against the dollar, touching 1.0635 dollars before pulling back slightly to 1.0638 dollars from 1.0687 Monday after a day after a key European Central Bank official suggested it wold likely further loosen monetary policy.

"It's key for a central bank to keep inflation expectations anchored, especially in a period of slack in the economy, and we have some signals that these inflation expectations are still fragile," Executive Board member Peter Praet said in a Bloomberg interview in Frankfurt on Monday.

Eurozone economic activity and prices are subdued, with a multi-billion-euro bond-buying scheme aimed at boosting lending unable to get traction.

The bank's chief Mario Draghi last month hinted at a widening of the programme in December, which -- combined with expectations of a US interest rate hike before 2016 -- has pushed the euro to multi-month lows.

US indices rose slightly on Wall Street, the Dow adding 0.5 percent on stronger than expected earnings from retail giants Wal-Mart and Home Depot, while the tech-rich Nasdaq and the S&P 500 added around half a percent each.

Wal-Mart shares rose 2.7 percent as it reported third-quarter earnings of $1.03 per share, five cents above expectations.

Fellow Dow member Home Depot gained 3.2 percent after reporting that third-quarter earnings surged 12.2 percent to $1.7 billion.

Asian stock markets earlier advanced strongly, with Tokyo, Hong Kong and Sydney all posting healthy gains. However, Shanghai edged down.

- Key figures at European close -

London - FTSE 100: UP 2.0 percent at 6,268.76 points

Frankfurt - DAX 30: UP 2.4 percent at 10,971.04

Paris - CAC 40: UP 2.8 percent at 4,937.31

EURO STOXX 50: UP 2.6 percent at 3,449.80

New York - Dow: UP 0.5 percent at 17,573.78

New York - S&P 500: UP 0.6 percent at 2,065.44

New York - Nasdaq: UP 0.6 percent at 5,015.60

Tokyo - Nikkei 225: UP 1.2 percent at 19,630.63 (close)

Euro/dollar: DOWN to $1.0638 from $1.0687 in late US trade Monday

Dollar/yen: UP to 123.60 yen from 123.18 yen

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