European stocks rally, Billabong rollercoaster

European stocks performed strongly on Thursday after

the US economic news advanced a better outlook for the international economy and the European Central Bank (ECB) announced more relaxed credit policies for lenders. Big movers were Hermès, Burberry and Billabong.

UK saw its retail sales grew 0.9 percent in the second quarter compared with the previous three months, uplifting the local Stock Exchange with Burberry on the foot front.

In Paris, shares in Hermès International rose 4.5 percent after the luxury company said sales increased 12 percent in the second quarter. Total shares added 2.1 percent after Nomura upgraded its recommendation on the stock to "buy" from "neutral."

Down Under, Billabong shares fluctuated significantly: rose 4 cents, or 11 percent, to 40.5 cents, after earlier rising as much as 16 percent to 42 cents. The stock has surged 71 per cent this week after Billabong said on June 16 it has agreed to a 294 million dollars Altamont financing package that would refinance Billabong’s existing debt. As part of the deal Altamont was issued with options that represent 15 percent of Billabong’s stock.

Finally, the Etam Group posted sales for the last quarter of 263.2 million euros, positively boosted by the positive currency impact of 0.7 million euros on the appreciation of the yuan against the euro. Sales were up 0.7 percent compared with the second quarter of 2012. Like-for-like and at constant exchange rates, sales increased by 1.4 percent.