-FTSE 100 reaches five-year high
-Strong earnings results push stocks higher
-New data signals economic recovery

FTSE-100: 0.29%
Dax-30: 0.61%
Cac-40: 0.24%
FTSE Mibtel 30: 0.43%
Ibex 35: 0.80%
Stoxx 600: 0.39%


European equities surged Wednesday following strong earnings reports and positive economic data.

The FTSE 100 reached a five-year high with Tullow Oil topping London's benchmark as it surged 5.58% after posting a 4% rise in annual profits on the back of increased sales and output.

The market also reacted positively from results out by Heineken and Peugeot.

Heineken, the world's third-largest brewer, gained 5.4% after reporting €2.9bn in earnings before interest and taxes, excluding some items, up from €2.7bn.

Peugeot jumped 6.6% after France's biggest automaker reported a narrower operating loss than predicted.

Kabel Deutschland Holding rocketed 8.7% as Vodafone Group was said to consider a bid for Germany's largest cable provider.

Global economy shows signs of improvement

Italy sold €5.2bn euros in sovereign debt through three separate auctions as uncertainty remains over the elections to be held later this month. The country disposed €3.499bn in bonds with a 2015 maturity date at a yield of 2.3%, compared to the prior 1.85%.

In Spain, BBVA Research has recognised the improved growth prospects for the country this year. In a conference held in Madrid, the Spanish bank's economic analysis unit announced its revised forecast for the country's GDP, forecasting a 1.1% contraction, compared to its prior estimate for a decline in output of 1.4%. BBVA Research sees a moderate pace of growth of 1.1% in 2014.

The European Union (EU) Trade Commissioner Karel De Gucht said the EU aims to complete trade talks with the US within two years after leaders on both sides of agreed to move ahead. It comes a day after President Obama promised to pursue deal to expands the country's relationship with the Eurozone.

Other asset classes tumble

The euro/dollar fell by 0.12% to 1.3438.

Front month Brent crude futures dropped by 0.017 dollars to the 118.640 dollar level on the ICE.

RD

Related share prices