European stocks end at week's high

European shares closed up for the fourth straight day yesterday, boosted by carmakers such as DaimlerChrysler on merger talk in the US and as oil prices fell following a big rise in US crude oil inventories.

Credit Suisse rose two per cent and was among the top gainers as it beat first-quarter profit estimates, buoyed by strong earnings at its flagship private bank.

The healthcare sector index extended gains to hit its highest level in nearly three years as investment funds, concerned about an economic slowdown, step up their exposure while moving away from growth sectors, traders said.

The FTSEurofirst 300 pan-European index ended 0.6 per cent higher at 1,075.0 points, the day's peak and a one-week high. Many European markets are closed today because of the Ascension Day bank holiday, which will hit volumes.

Among the day's standout gainers, Anglo Irish Bank Corp Plc rallied seven per cent after it beat market forecasts with a 35 per cent rise in first-half profits and said it was well placed to grow in its core Irish and UK markets.

"The market share they have got is still really quite small. So there is still a decent opportunity for them to take market share, continue growing and developing the business," said Andrew Lynch, a fund manager at Schroders, which owns the stock.

A decision by the European Central Bank to leave rates unchanged at two per cent was widely forecast and had little effect on trading.

Global equity markets have been hit by fears of a consumer slowdown and sliding confidence, with the FTSEurofirst index falling three per cent from 33-month highs in early March.

With Europe's first-quarter earnings season having got off to a solid start, some investors said the weakness in stock markets might be an opportunity to buy.

"We think stocks have reached multiples that are consistent with declining earnings, too bearish in our view," said Ian Scott, a strategist at Lehman Brothers. "We think the market is close to a bottom."

The narrower DJ Euro Stoxx 50 index rose 0.6 per cent to 2,981.0 points. A rise in US markets also supported European shares.

Around Europe, London's FTSE 100 and Frankfurt's DAX both closed 0.4 per cent higher, while Paris's CAC-40 ended up 0.8 per cent.

US crude oil futures fell after government data showed domestic crude supplies rose at its highest weekly level since July 1999.

Europe's DJ Stoxx auto sector, which declined nearly nine per cent last month and topped losers, was boosted by news billionaire Kirk Kerkorian offered to more than double his stake in General Motors to 8.8 per cent.

The offer was at a premium to the struggling automaker's stock price and pushed up GM's shares by 16 per cent, boosting the broader market.

Volkswagen, which had fallen earlier in the session on disappointment of weakness in its April US sales, ended 1.8 per cent higher, while DaimlerChrysler rose 2.6 per cent.

German automotive supplier Continental AG figured among the losers, down 6.2 per cent after missing first-quarter profit estimates.