Europe’s main stock markets rose yesterday despite global growth warnings, receiving support from Wall Street that looked ahead to a key jobs speech by US President Barack Obama.

London’s FTSE 100 index of leading companies climbed 0.41 per cent to 5,340.38 points, Paris’s CAC 40 also rose 0.41 per cent to 3,085.83 points, and in Frankfurt the DAX edged up 0.05 per cent to 5,408.46 points.

The euro fell against the dollar ahead of the Obama speech, and after eurozone growth forecasts were lowered. In late London trading the single currency bought $1.3938 compared to $1.4096 late in New York on Wednesday. The dollar rose to 77.42 yen from 77.26 yen.

Elsewhere in Europe, Swiss stocks rose 0.50 per cent, Milan 0.69 per cent, Brussels 0.92 per cent, Lisbon 1.10 per cent and Madrid 1.49 per cent.

European stocks slumped during the day after European Central Bank and the Bank of England both held rates steady as expected, and the Organisation for Economic Cooperation and Development (OECD) and the ECB slashed their eurozone growth forecasts.

While the ECB signalling an end to rates rises was seen positively, many in the market had been looking from the BoE to undertake further stimulus.

The ECB kept its benchmark rate at 1.5 per cent and the BoE held rates at a record low level of 0.5 per cent.

A new recession stalks some rich countries, the OECD said, with debt levels in many major economies blocking their ability to fight recession through spending and tax cuts.

The OECD said it now expects the eurozone is set for third-quarter growth of 1.4 percent but will switch into a downturn of 0.4 per cent in the final quarter.