European shares rise

European stocks rose yesterday to extend a winning streak to five days as advances in defensive utility, drug and food shares offset big losses in Volkswagen and a dip in heavyweight Vodafone.

The pan-European FTSEurofirst 300 index of top European shares ended 0.5 per cent higher at 933.72 points.

The index lost 12.7 per cent last month in its worst monthly performance in six years and has declined nearly 40 per cent this year on a credit market crisis that led to meltdown in the banking sector and a slowing of the economy.

Yesterday, gains in defensive stocks ensured a positive finish, with utility E.ON adding most points to the FTSEurofirst benchmark with a 7.1 per cent rise, benefiting from a reweighting of Germany's DAX index.