Stocks show rally in Europe after mixed performance in Asia

LONDON -- European stock prices advanced broadly Monday, led by gains in automobile, banking and insurance shares, after a mixed performance in Asia.

London's FTSE 100 share index was up 1.98 percent at midday, while the Xetra DAX index gained 4.0 percent in Frankfurt and the CAC40 index in Paris was up 3.8 percent.

In the first half hour of trading in New York, the Dow Jones industrial average was up 236.37 at 8,472.18 after dropping 1,369.70 last week, its biggest-ever weekly decline.

The Nasdaq composite index rose 47.55 to 1,470.74, while the Standard & Poor's 500 index advanced 25.83 to 991.63.

The gains followed a mixed day on Asian exchanges, with Hong Kong up 3.9 percent and Singapore up 3.5 percent. Prices fell by 1.6 percent in Taipei and 1.5 percent in Manila, while the big Tokyo market was closed for a holiday.

"The news flow is still on the downside but the market is starting to price in what has happened. As days go by, the City may get a better grip of the situation," said Henk Potts of Barclays Stockbrokers in London.

The Dow Jones Stoxx 50-share index was up 2.8 percent at midday, with automotive shares up 5.7 percent, banks up 4.1 percent and insurance shares up 4.0 percent.

Automotive shares were strong in German trading.