PARIS Oct 11 European stocks rallied on
Thursday as a drop in U.S. jobless claims fuelled recovery hopes
for the world's biggest economy while Spain's credit downgrade
boosted expectations that Madrid would soon request a bailout.
The FTSEurofirst 300 index of top European shares
unofficially closed 0.9 percent higher at 1,099.37 points,
snapping a three-day losing streak during which the index had
lost 1.9 percent.
"We're buying the dips, adding beta in portfolios. The
overall newsflow isn't too bad, and we've got profit warnings
already so expectations for the upcoming earnings season are not
very high," Talence Gestion fund manager Alexandre Le Drogoff
"Even as economic growth remains sluggish, we have the
feeling that the safety nets put in place by the ECB will work,
and it's a big relief. It basically brings back visibility."
Data showed initial jobless claims fell to the lowest level
in more than four and a half years, signalling improvement in
the battered U.S. labour market.
Luxury stocks paced the gains on Thursday as Burberry's
reassuring comments on sales trends - a month after its
shocking profit warning - helped the sector reverse a portion of
its month-long slide, with traders also mentioning short
Burberry surged 13.6 percent, Louis Vuitton owner LVMH
added 4.1 percent and Swiss watch maker Richemont
gained 4.5 percent.