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Market Update Analysis: 
Europe Hits Five-Year High
Author: Elena Todorova
123jump.com
Last Update: 12:41 PM EDT October 05 2006


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European markets closed at a five-year high Thursday, boosted by takeover speculation, rebound in commodities prices, and interest-rate increases in line with expectations. London FTSE 100 closed up 0.6%, with Corus Group rising 16% amid hopes that it will enter into a deal with India''s Tata Steel. The German DAX 30 rose 0.5%, while the French CAC 40 advanced 0.6%.

 
Currencies

The euro was barely changed against the U.S. dollar Thursday ahead of a meeting at which the European Central Bank was widely expected to raise its key interest rate. The euro bought $1.2711 in morning European trading, compared with $1.2713 in New York late Wednesday.

With the Bank of England also meeting Thursday, the British pound bought $1.8861, barely below Wednesday''s level of $1.8864. The dollar slipped to 117.66 Japanese yen from 117.89 yen.
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