Economic news

German business confidence has bounced back unexpectedly, with optimism about current conditions hitting a fresh 15-year high.The surge in the Munich-based Ifo business climate index, from 104.9 in September to 105.3 in October, coincided with an unexpected rise in French business confidence and followed three consecutive monthly falls.

Advancers

Michelin, the biggest tire maker in the world, gained 2% after it announced a 4.9% rise in quarterly sales, matching expectations. Raw materials costs remained a concern, the company said and would be 23% higher in 2006 than the previous year, but it still expected an operating margin close to 8%.

Moller Maersk, the Danish shipping and oil company, advanced 3.1% after it was reported that the Tierra Negra oilfield in Columbia, in which Maersk owns a 40% stake, may contain much more oil than previously forecast.

Nordea Bank, financial services group, gained 1.9% following its report of a forecast-beating 46% growth in third-quarter operating profit on strong revenue growth and slower cost increases.

Decliners

STMicroelectronics, a chipmaker, fell 1% despite reporting a 133% rise in third-quarter profit, as concerns arose over the outlook of the company for the fourth quarter.

Infineon, shed 0.8% after it revealed the cost of the insolvency of mobile phone group BenQ, one of its biggest customers.

Metrovacesa, a construction group, fell a further 1.9% having lost more than 8% in the previous session as questions remained about its inclusion in the Ibex index.

Oil and gold

December light, crude oil rose 10 cents to $59.45 a barrel in after-hours electronic trading on the NYME at 10:44 a.m. in London. Brent crude for December settlement advanced 17 cents to $60.03 a barrel on the ICE Futures exchange in London.

Gold traded in London at $581.60 bid per troy ounce, up from $581.00 late Tuesday.

Currencies

The U.S. dollar was mostly lower against other major currencies in European trading Wednesday morning. The euro traded at $1.2571, up from $1.2566 late Tuesday in New York. The British pound was quoted at $1.8764, up from $1.8742. The dollar bought 119.11 Japanese yen, down from 119.27.