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LONDON (AFP) – Europe's main stock markets rose on Tuesday and gold pushed to a fresh record high, while the euro recovered after an initial slump as investors fretted over weak recovery in certain eurozone nations.

London's benchmark FTSE 100 index of leading shares won 0.76 percent in late morning trade, Frankfurt's DAX 30 gained 0.63 percent and the Paris CAC 40 added 0.72 percent.

The European single currency, which has been hampered this week by resurgent concerns over eurozone sovereign debt, fell as low as 1.3824 dollars before clawing back to 1.3923 dollars.

Gold soared to a record 1,414.85 dollars per ounce on the London Bullion Market as the dollar fell.

"European equities have swung back into positive territory as the US dollar gave up its early gains," said analyst David Morrison at trading website GFT.

"We are in a transitional area now with all the major US news out of the way and a renewed focus on eurozone sovereign debt," he told AFP.

"The euro/US dollar will now dominate trading, but in the absence of concrete news out of the European peripherals like Ireland and Greece, the single currency is likely to swing between technical support and resistance levels. This will lead equities."

Gold has surged to fresh pinnacles this week, boosted by its safe-haven status and the weaker US currency, which makes dollar-priced commodities cheaper for buyers with stronger currencies.

"Gold and silver continue to soar and this is a real warning to investors that all is not well with the global financial system," added Morrison.

"Precious metals are a safe haven and ultimate store of value. The outbreak of a full-blown currency war will only increase their appeal."

Later this week, investors will pay close attention to Group of 20 summit talks in South Korea, dealers said, amid simmering tensions between China and the United States over economic and monetary policy.

Super-loose US monetary policy has been cited as a factor roiling currency markets, hammering the dollar and prompting a wave of speculative money to pour into Asia and drive up regional currencies.

That has sparked concerns over a damaging "currency war" in which nations compete to weaken their currencies to protect exports.

Meanwhile on Tuesday, equities also won modest support from a batch of upbeat results from British mobile phone giant Vodafone and retailer Marks & Spencer, while Barclays bank also gained despite news of flat profits.

M&S, watched as a barometer of mid-range spending habits, reported a surge in first-half net profits, aided by rising clothing and food sales, but warned of "challenging" trading conditions in the coming months.

Earnings after tax rose by 16.4 percent to 261.2 million pounds (304 million euros, 421 million dollars) in the 26 weeks to October 2, compared with the equivalent period of the group's previous financial year.

Vodafone said Tuesday that it had agreed to sell its SoftBank interests to the Japanese telecoms firm for about 5.0 billion US dollars, as it posted soaring interim profits.

Earnings after tax soared by 56.5 percent to 7.5 billion pounds (8.8 billion euros, 12.2 billion dollars) in the six months to September, compared with the same part of 2009.

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