UK stocks : FTSE closes up 0.3 pct
- where returns have been hit since interest rates have been held at near record lows - to equities, which offer better returns via dividend payouts.
"People want to see the glass half-full," said Baker.
"There's a lot of cash around not earning very much money, and some of that has to go into equities," he added.
VODAFONE AND ROCHE RISE
Gains at heavyweight telecoms stock Vodafone and pharmaceuticals company Roche added the most points to the FTSEurofirst 300 index.
Vodafone rose 3.2 percent, which traders said was partly due to comments from major U.S. hedge fund manager David Einhorn who told investors this week that he had added to his position in Vodafone.
Traders added that renewed speculation that Vodafone might sell its stake in the Verizon Wireless venture with U.S. group Verizon had also boosted Vodafone.
Roche rose 1.6 percent, which traders said was due to an approval by the U.S. Food & Drug Administration (FDA) for its Avastin product.
However, mobile phone maker Nokia fell 5.5 percent after announcing plans to axe its dividend in order to shore up its cash position.
Analysts at Bank of America Merrill Lynch kept an "underperform" rating on Nokia, writing in a research note that Nokia's gross margins and channel inventories were "not encouraging."
The Euro STOXX 50 index has a current relative strength index (RSI) reading of around 63 points - below the 70 point mark which means an index is in technically "overbought" territory, and suggesting it has room to rise in coming days.
The Euro STOXX 50 is also
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