[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher. Henkel AG reported better than expected earnings. Deutsche Bank earnings nearly tripled in the third quarter. Alstom SA anticipates more orders for power plants in the second half. AXA and BASF report weak earnings.[/R]

European markets rebounded in the late afternoon trading after the release of third quarter U.S. GDP. The better than expected economic expansion at 3.5% lifted industrial and cyclical stocks.

Earnings at Henkel, Deutsche Bank, France Telecom and capital offering plan at Societe Generale also contributed to the positive sentiment. Alstom SA also signaled higher order in the second half and reiterated its earlier target on operating margins.

In London FTSE 100 Index closed higher 51.28 or 1.01% to 5,131.70, in Paris CAC 40 Index increased 46.14 or 1.26% to close at 3,709.92, in Frankfurt DAX index higher 77.29 or 1.41% to close at 5,573.56. In Zurich trading SMI increased 60.21 or 0.96% to close at 6,340.15.

Federal Labor Agency in Germany reported seasonally adjusted number of unemployed people decreased 26,000 to 3.43 million in October. The decline was not expected by economists.

Gainers & Losers

Alstom SA increased 1.1% to €47.40 after the maker of high-speed trains and power stations said that orders in the second half are expected to recover and reiterated its outlook for the fiscal year operating margin of 9%.

AXA SA decreased 1.3% to €24.63 after the insurer said nine month revenue fell 2.6% to €68.09 billion from €69.46 billion a year ago.

Aixtron AG rose 2.7% to €18.65 after the maker of specialized equipment used to produce LED screens after the company reported third quarter results and indicated a plan to raise capital.

BASF SE dropped 1.1% to €36.59 after the chemical maker said third quarter net profit fell 69% on lower sales at its chemicals and plastics division and restructuring charges related to the accelerated integration of Ciba.

Bijou Brigitte Modische Accessoires AG closed unchanged at €114.88 after the fashion jewelry and accessories sector said that it will continue to expand its business in the remaining quarter of fiscal 2009. For the year, the company anticipates to open 64 new stores.

Cegedim SA fell 4.3% to €67.94 after the supplies sales tracking software said it plans to raise €180 million in equity capital in a rights issue with the support of the Labrune Family and Fonds Strategique d''Investissement.

Continental AG rose 4.0% to €36.39 after the auto- parts maker said third quarter net loss €1.04 billion.

CropEnergies AG dropped 1.4% to €3.45 after the operator of bio-ethanol plant said reduces the production planning for the current third quarter due to an unscheduled need for repairs in its new plant in Belgium.

Dassault Systemes SA decreased 1.2% to €39.49 after the maker of three-dimensional design software said third quarter net income fell 13% to €38.5 million or €0.32 a share compared to €44.2 million or €0.37 a year ago.

Deutsche Bank AG rose 1.5% to €49.67 after the lender reported third quarter net income of €1.38 billion compared to €435 million.

Deutsche Lufthansa AG rose 1.7% to €10.56 after the airline warned that its fiscal 2009 earnings will be hit by falling passenger numbers and the rising oil price.

ESR SA the engineering company fell 1.7% to €1.71.

Etablissements Maurel et Prom SA the oil explorer rose 0.6% to €13.85.

France Telecom S.A dropped 0.2% to €17.70 after the third quarter revenue slipped 6.4% to €12.69 billion and profit decreased 8% to €4.56 billion.