FTSE 100 up 0.26%; DAX up 1.09%; CAC 40 up 0.86% (Il Sole 24 Ore Radiocor) - London, 23 Apr - European shares ended higher to extend yesterday's gains as London hit new record highs amid rate cut talk.

The Stoxx 600 index closed up 1.11% as markets got a lift from a buoyant Wall Street where the focus shifted firmly to earnings reports as geopolitical tensions waned. The London FTSE 100 hit new all-time highs as it rose for a fifth straight session, with hopes of a forthcoming interest rate cut from the Bank of England helping lift sentiment.

In the euro zone Bundesbank head Joachim Nagel reiterated his belief that the ECB needed to be convinced inflation was heading for the bank's 2% target before cutting its rates.

Analysts widely expect the ECB to cut rates in June.

Investors meanwhile continued to monitor fresh earnings reports from European companies including Renault, Kering, OVH, Novartis and Associated British Foods.

Traders also digested data showing that eurozone business activity expanded in April as growth in the services sector offset weakness in manufacturing.

The eurozone's purchasing managers' index for the manufacturing sector fell this month to a four-month low of 45.6 from 46.1 in March, while that for the services sector increased to an 11-month high of 52.9, up from 51.5 in March, according to preliminary data released by S&P Global and the Hamburg Commercial Bank.

The manufacturing PMI output index rose to 47.3 from 47.1 in March, a 12-month high. The composite PMI output index, a weighted average of manufacturing output and services PMI, was at an 11-month high of 51.4 against 50.3 the earlier month.

The London FTSE 100 closed up 0.26% at 8,044.81 points, the Frankfurt DAX was 1.58% higher at 18,142.58 points, and the Paris CAC 40 rose 0.86% to 8,109.67 points, while in Milan the FTSE MIB rose 1.90% to 34,363.75 points and in Madrid the IBEX 35 closed 1.67% higher at 11,072.50 points.

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(RADIOCOR) 23-04-24 17:57:45 (0730) 5 NNNN