In London, the FTSE-100 index consolidated gains of the previous week, rising 1.4 per cent to 4693.9. Takeover hopes across the market were fired at the start of the week when the Guinness/Grand Metropolitan merger was announced. The momentum was not sustained as investors began to consider the possible impact of next month's budget. Thursday's inflation report which showed the former Conservative government had reached its target of 2.5 per cent provided some encouragement that interest rates will not have much further to rise.
In Germany, the DAX Index closed at a record high. Over the week it climbed 1.2 per cent to 3604.55. In France, the CAC Index closed at a record, having climbed 5.7 per cent over the week to 2784.28. Copyright: IOS & BloombergReuse content