European shares end at three-year high

A slew of upbeat results pushed European shares to new three-year highs yesterday with DaimlerChrysler and AstraZeneca also surging as their chief executives announced their departures.

The two firms also beat earnings forecasts to follow a familiar pattern around Europe while the euro slipped after comments from Italian Prime Minister Silvio Berlusconi that the euro had "screwed everybody".

By 1030 GMT the FTSEurofirst 300 index was up 0.4 per cent at 1,178.5, around its highest level since June 2002, while the narrower DJ Euro Stoxx 50 was 0.6 per cent firmer at 3,330.84.

Better prospects for the global economy and low, stable ECB interest rates are seen as major factors underpinning strong corporate earnings while the euro's fall has supported exports.

"Overall results have certainly been positive and they support our stance that we would have a good earnings season in the US and Europe but I would say it is a positive surprise," said Lars Kreckel, a strategist at ABN AMRO.

"I would not overestimate the impact of the weakening euro (over the last year) but it has played a role. Berlusconi's comments are not a surprise coming from him and it doesn't change our view of the euro or Europe."

AstraZeneca added 4.6 per cent as second-quater pretax profit of $1.75 billion easily beat forecasts while shares had already got impetus after a source tipped off Reuters that the firm would announce the departure of chief executive Tom McKillop. Rival GlaxoSmithKline is expected to report similarly robust figures later.

DaimlerChrysler surged nearly 10 per cent, hitting €40, as a surprise profit from luxury unit Mercedes helped operating profit beat forecasts and the firm confirmed market rumours that chief executive Juergen Schrempp was to leave.