[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher after G-20 meeting. Investors bid up stocks and commodities in Europe on the expectations that the current stimulus will remain in place. Allianz reported sharply higher earnings as markers rebound.[/R]

The European benchmark indexes closed higher after the Group of 20 nations left economic stimulus in place and showed no urgency to cut the government supported financial spending. The dollar fell after the meeting in Scotland and the markets in Europe, Asia and emerging national rallied.

Germany reported industrial production index increased 2.7% in September from August and declined 12.9% from a year ago.

Allianz SE increased 4.3% after it reported third quarter profit that more than doubled.

Cadbury Plc rejected unsolicited offer from Kraft that was not revised after first disclosed nearly two months ago. Kraft offered 300 pence cash and 0.2589 new Kraft shares and valued Cadbury at 717 pence a share or £9.8 billon.

Cadbury closed up 0.4% to 761 pence.

In London FTSE 100 Index closed higher 95.09 or 1.85% to 5,237.81, in Paris CAC 40 Index increased 71.78 or 1.94% to close at 3,779.07, in Frankfurt DAX index higher 116.78 or 2.13% to close at 5,605.03. In Zurich trading SMI increased 87.41 or 1.39% to close at 6,381.02.

Gainers & Losers

Allianz SE added 4.7% to €83.10 after the insurer said third quarter revenues rose 4.3% to €22.0 billion from €21.1 billion a year ago. Net profit in the quarter was €1.32 billion or €2.94 per diluted share compared to net loss of €2.02 billion or €4.49 per share a year ago.

Colonia Real Estate AG increased 7.6% to €4.63 after the real estate company reported third quarter net profit of €2 million.

Continental AG rose 3.8% to €38.02 after the auto-parts maker was upgraded to “buy” from “hold” at Citigroup Inc.

Deutsche Post AG rose 3.1% to €12.30 after the global logistics provider raised its fiscal 2009 outlook and expects underlying EBIT to at least €1.35 billion from the previous estimate of €1.2 billion.

Escada AG surged 91% to €1.34 after Mittal Family Trust agreed to acquire its core assets and support the management.

Hermes International SCA rose 0.6% to €99.43 after the luxury goods maker said third quarter sales rose 10.2% to €452.1 million from €410.5 million a year ago and at constant exchange rates, sales were up 4.8%. Silk & textiles sales rose 0.1% to €45.5 million from €45.4 million a year ago and fell 3.1% at constant exchange rates.

Impregilo SpA fell 3.1% to €2.41 after the engineering contractor said nine months revenues fell 6.7% to €1.96 billion from €2.10 billion a year ago. Net profit for the nine months fell 77% to €37.3 million compared to €164.2 million a year ago.

Italcementi SpA advanced 1.3% to €10.14 after the cement maker said third quarter revenues fell 15.4% to €1.26 billion from €1.49 billion a year ago. Net profit in the quarter fell 28% to €48.4 million compared to net profit of €66.8 million a year ago.

L''Oreal SA declined 1.6% to €20.90 after the cosmetics leader said third quarter sales fell 0.7% to €4.24 billion from €4.27 billion a year ago and like-for-like sales were up 0.8%. Cosmetics sales fell 0.3% to €3.97 billion from €3.98 billion a year ago and like-for-like sales rose 1.1%.

MorphoSys AG rose 2.0% to €17.53 after the drugmaker announced today that it has received clearance from Germany''s Paul-Ehrlich-Institute as well as a positive opinion from the German ethics committees to commence a Phase 1b/2a human clinical trial in patients with rheumatoid arthritis of its drug MOR103, a fully human monoclonal antibody directed against Granulocyte Macrophage-Colony Stimulating Factor.

Munich RE the reinsurer added 1.6% to €106.56.

Parmalat SpA increased 3.3% to €1.95 after the dairy group said nine months revenues fell 1% to €2.85 billion from €2.88 billion a year ago. Net profit for the nine months fell 55.6% to €283.4 million or € 0.16 per diluted share compared to €638.0 million or €0.37 per share a year ago.

Prysmian SpA rose 0.5% to €12.89 after the cables maker said nine months revenues fell 29.6% to €2.78 billion from €3.95 billion a year ago. Net profit for the nine months fell 13% to €203 million or €1.14 per diluted share compared to €233 million or €1.28 per share a year ago.