(RTTNews) - The European markets rose on Thursday after a report showed that the U.S. economy grew more than forecast in the third quarter following four consecutive quarters of contraction.

The U.S. Commerce Department said that its advance estimate showed the country’s GDP increased at an annual rate of 3.5% in the third quarter compared to a 0.7% decrease in the second quarter. Economists had been expecting GDP to increase by 3.2%. With the bigger than expected increase, GDP rose at its fastest rate since the 3.6% growth that was seen in the third quarter of 2007. It was the best indication yet that the worst recession in seven decades has ended.

Crude for December delivery rose $2.61 to $80.07 a barrel on the New York Mercantile Exchange on new signs that the U.S. economy has rebounded.

The FTSEurofirst 300 index of pan-European blue chips closed 1.76% higher at 997.49 points, while the narrower DJ Stoxx 50 index rose 1.53% to 2,463.54 points.

Around Europe, the U.K.’s FTSE 100 index rose 1.13% to 5,137.72, while France’s CAC 40 index surged up 1.37% to 3,714.02 and Germany’s DAX index climbed 1.66% to 5,587.45.

Lloyds Banking Group, Britain’s biggest mortgage lender that is 43% owned by the government, climbed 7.5% after the company said it may sell new stock in a rights offer and will also consider exchanging group capital securities. Royal Bank of Scotland, Britain’s biggest government-owned bank, jumped 9.5%.

Dutch insurer Aegon surged up 6.4% after the company said it will repay ?1 billion of state aid this year and the remaining ?2 billion at the earliest opportunity.

Belgium’s KBC rallied 17.3% after the company reported good progress in talks with the European Union over plans to repay state aid.

Mining stocks gained after metals prices advanced. BHP Billiton, the world’s biggest miner, rose 2.8%, while Anglo American, the second biggest, climbed 5.6% and Rio Tinto, the third biggest, surged up 4.2%. Copper miner Antofagasta gained 4.3%.

Telenor, the biggest Nordic phone company, surged up 6.9% after the company reported a 16% rise in third quarter profit and raised its full year outlook.

On the other hand, Royal Dutch Shell, Europe’s second biggest oil company, fell 2.9% after the company reported third quarter profit that fell 62% from last year due to lower crude oil and natural gas prices.

U.K. rail operator National Express tumbled 12% after the company halted merger talks with Stagecoach Group and said it will sell shares instead as it seeks to pay down debt.

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Posted in Categories: Eurozone, Releases, Stocks, UK, USA.

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