European shares hit a three-week closing high on Wednesday, driven by strong US company results and growing expectations of fresh economic stimulus, with miners topping the risers on hopes of improving raw materials demand. The FTSEurofirst 300 index of top European shares ended 1.4 percent firmer at 1,086.52 points, the highest close since September 20. Stocks traded on NYSE Euronext were briefly affected by technical problems.
Germany's DAX index hit a two-year high, while the blue chip Euro STOXX 50 rose 2.3 percent to 2,840.55, breaching a key resistance point of 2,740.32, its 61.8 percent retracement of an April high to a May low. Miners featured among the top gainers, with the STOXX Europe 600 basic resources index surging 3.4 percent. BHP Billiton, Anglo American, Antofagasta, Rio Tinto and Xstrata jumped 4.2 to 5.6 percent.
J.P. Morgan Chase & Co posted a 23 percent increase in quarterly profit, beating expectations, while Intel forecast on Tuesday upbeat fourth-quarter sales and margins as resilient demand from emerging markets and corporations offset weak consumer spending. Tech shares advanced, with the STOXX Europe 600 Technology Index rising 2.2 percent, also supported by ASML's profit-beating results. ASML climbed 5 percent, while Infineon, STMicroelectronics and Aixtron gained 2.4 to 10.2 percent.
Sentiment improved following the release of minutes of the US Federal Reserve's September 21 meeting late on Tuesday. "Global markets have enjoyed the boost that yesterday's FOMC minutes delivered, with the suggestion that policy makers are preparing to inject more cash into the economy sending investors back to more volatile equities," said Yusuf Heusen, senior sales trader at IG Index.
The minutes showed officials thought the struggling US recovery might soon need more help. They discussed ways to provide it, including possible adoption of a price-level target and buying more longer-term government debt. Appetite for risky assets such as equities jumped, with the VDAX-NEW volatility index hitting a six-month low. The lower the index, the higher the market's desire to take risk.
Banks were also stronger. The STOXX Europe 600 banking index rose 1.4 percent, while BNP Paribas, UBS and Deutsche Bank gained 2.6 to 4 percent. Asia-focused Standard Chartered, however, fell 1.7 percent after it launched a $5.3 billion rights issue.
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