RTTNews - The European markets rose for the seventh day on Tuesday, as mining and energy stocks rallied after copper and crude oil prices climbed.
U.S. Federal Reserve Chairman Ben Bernanke told lawmakers today that the U.S. economy is showing signs of stabilization, but warned that the economy is still in a fragile state, with unemployment high and consumer spending shaky. Bernanke said a gradual recovery is expected in 2010, with some acceleration in economic growth the following year.
Crude for August delivery rose $0.37 to $64.35 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FTSEurofirst 300 index of pan-European blue chips closed 0.79% higher at 888.18 points, while the narrower DJ Stoxx 50 index rose 0.55% to 2,197.43 points.
Around Europe, the U.K.'s FTSE 100 index rose 0.85% to 4,481.17, while France's CAC 40 index surged up 0.98% to 3,302.89 and Germany's DAX index climbed 1.27% to 5,093.97.
Mining stocks gained after copper prices climbed to nine month highs. BHP Billiton, the world's biggest miner, rose 2.9%, while Anglo American, the second biggest, climbed 4.1% and Rio Tinto, the third biggest, surged up 2.3%. Copper miner Antofagasta gained 1.7%.
Heavily weighted oil stocks rose after crude oil prices advanced. BP, Europe's biggest oil company, surged up 1%, while Royal/Dutch Shell, the second biggest, rose 0.9% and Total, the third biggest, climbed 1.7%.
William Morrison, Britain's fourth largest grocery chain, jumped 8.2% after the company raised its full year outlook.
French luxury goods group Hermes surged up 4% after the company reported a 12% rise in second quarter sales, driven by demand for its handbags and perfumes.
On the other hand, Nokia, the world's largest maker of mobile phones, fell 2.5% after Morgan Stanley downgraded the stock to underweight from overweight, citing rising competition.
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