European stocks rise early in broad rally

PARIS, April 8 (Reuters) – European stocks rose in early
trade on Friday, resuming their brisk three-week rally as the
European Central Bank’s decision to raise interest rates helped
fuel optimism over the health of euro zone economy.

Investors were also relieved that a strong aftershock which
struck Japan’s earthquake-ravaged northeast late on Thursday had
not done major damage. News of the earthquake had sparked a bout
of profit taking in late trading in Europe on Thursday.

At 0705 GMT, the FTSEurofirst 300 (.FTEU3: Quote, Profile, Research) index of top
European shares was up 0.5 percent at 1,149.74 points.

“The ECB’s move is sort of removing the punch bowl, which is
a good thing at this point. The message is that overall, the
European economy has been improving,” a Paris-based trader said.

Mining shares such as Xstrata (XTA.L: Quote, Profile, Research) and Anglo American
(AAL.L: Quote, Profile, Research) featured among the top gainers, rising along with
buoyant metal prices.
(Reporting by Blaise Robinson)

European stocks rise early in broad rally