LONDON, April 23 Europe's top share index
recorded its biggest one-day gain in more than seven months on
Tuesday, buoyed by strong earnings and as a downbeat German
survey raised expectations of a rate cut by the European Central
The FTSEurofirst 300 provisionally finished 2.4
percent firmer at 1,182.49 points, the highest close since April
11 and the biggest daily rise since early August, also helped by
technical buying after it breached key resistance levels.
Investors rushed to buy equities after a survey showed
Germany's private sector shrank for the first time in five
months in April, reinforcing the case for an interest rate cut
by the region's central bank at a policy meeting on May 2.
"The business cycle indicators are still not recovering
strongly and could be a signal that we are going to see some
additional stimulus coming through from the ECB," Robert Parkes,
equity strategist at HSBC Securities, said.
France's benchmark CAC-40 index rose 3.6 percent to
emerge as an outperformer after a survey of purchasing managers
produced a much less bleak reading for business activity.
British chip designer ARM Holdings surged 11.9
percent after beating profit forecasts.