European equities worked their way back up on easing concerns that profits for companies dependent on US sales may suffer, as the dollar rebounded from a three-week low against the euro. The FTSE 100 and CAC 40 were both up 0.60 percent to 5,248.50 and 4,339.49, respectively, while the DAX made a 0.36 percent gain to 4,669.97.
Philips, Europe’s biggest maker of consumer electronics advanced 2.1 percent to 22.45 euros as the company makes 23 percent of its sales in the US.
The UK’s biggest mortgage lender, HBOS, climbed 1.89 percent to 891.00 pence after Goldman Sachs upgraded the company’s shares to "outperform", citing the prospect of interest rate cuts, solid interim results and robust loan growth underpinning UK banks.
The German 10-year bund yield rose 2 basis points to 3.234 on concerns that signs of faster inflation in Euro zone, such as French CPI, may reduce the chances of an interest-rate cut by the European Central Bank.
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