European shares rose for a fourth straight day to hit a six-month closing high on Tuesday, with energy companies BP and BG Group gaining after profits beat forecasts. The energy sector was also boosted by a weaker dollar supporting crude prices, ahead of the US Federal Reserve's likely announcement of monetary easing on Wednesday. The FTSEurofirst 300 index of top European shares rose 0.5 percent to 1,093.65 points, its highest close since late April.
The European benchmark is up more than 69 percent from its lifetime low of March 2009, with several major economies having emerged from recession helped by stimulus from governments and central banks world-wide. British energy producer BG rose 3.4 percent after reporting a 12 percent rise in third-quarter net profit compared with the same period in 2009, and significantly upgrading resources at its Brazilian oil fields.
BP gained 1.8 percent after its underlying performance beat all expectations on higher refining margins and a lower tax rate. BP, the world's biggest non-government controlled oil company by production last year, also lifted its estimate of the likely cost of its Gulf of Mexico oil spill to $40 billion, denting profits.
Other heavyweight energy shares to rise included Total and Royal Dutch Shell, up 1.5 and 1.7 percent respectively. The weaker dollar also boosted metals prices, sending miners higher. Antofagasta, Kazakhmys and Xstrata rose between 3.2 and 3.5 percent.
BHP Billiton rose 1.9 percent. Canada's National Post reported that the country is set to approve BHP Billiton's $39 billion bid for Potash Corp this week, but it might impose tough conditions which could threaten the world's biggest deal this year. Across Europe, Britain's FTSE 100 ended the day 1.1 percent higher; Germany's DAX and France's CAC40 rose 0.8 and 0.6 percent respectively.
Markets are generally priced for the Fed to commit to buying at least $500 billion in Treasury debt over the coming months. Back in Europe, eurozone manufacturers boosted their output in October at a faster pace than previously estimated, according to a business survey.
Comments
Comments are closed.