European stocks rallied on Thursday, propelled to their highest closing level in six months by a batch of upbeat quarterly results frrom bellwethers such as Nokia Shares of the world's largest handset maker jumped 6.3 percent after it posted forecast-beating profit, lifted by strong demand for cheap smartphones.
The FTSEurofirst 300 index of top European shares ended 0.6 percent higher at 1,093.24 points while the Euro STOXX 50, the euro zone's blue chip index, gained 1.1 percent at 2,882.29 points, both indexes reaching their highest closing levels since late April. "Stock indices are breaking above their long trading range as the spectre of a banking crisis and a double-dip recession fades away," said Marc Renaud, chief executive officer of Paris-based asset management firm Mandarine Gestion.
Spain's successful placing of two long-dated bonds also reassured investors. While demand slipped from recent equivalent sales, yields also declined, signalling that worries over the economy's long-term health are easing. Other positive signs were seen in the bond market, with the two-year German government bond yield rising above 1.0 percent for the first time since late March as euro zone short-term money market rates continued to inch higher on lessening central bank liquidity support.
Danone surged 4.8 percent after the French food group reported forecast-beating sales and kept its full-year outlook despite warning that economic and social crises would continue to hit consumption in Europe. The upbeat results also boosted UK-listed consumer goods groups Unilever, Associated British Foods and Reckitt Benckiser , which climbed between 2.4 and 3.9 percent.
French drinks group Pernod Ricard soared 6.3 percent after the maker of Absolut vodka and Mumm champagne pleased investors with better-than-expected sales, helped by a recovery in the United States as well as brisk growth in Asia, Russia and Ukraine. Shares of UK rival Diageo gained 2.3 percent. Bucking the trend, Swiss bank Credit Suisse dropped 4.5 percent after third-quarter net profit sank 74 percent, held back by sluggish equities trading at its investment banking unit.