European shares surge, led by LVMH and Greek banks

European stocks ended higher on Wednesday as better-than-expected results from LVMH triggered a rally in luxury goods makers, while Greek banks continued to recover on hopes of a deal with the European Union on Greece's debt. Shares in LVMH jumped 8.1 percent and hit a record high after it said fourth-quarter sales grew, partly thanks to a renaissance of its Louis Vuitton brand under star designer Nicolas Ghesquiere.
"Sales growth was particularly solid in the United States and Japan," Barclays France director Franklin Pichard said. Shares in rivals Hermes and Kering lifted 3.1 percent and 2.3 percent respectively. Greek banking shares rallied again, with Bank of Piraeus up 20.8 percent and Eurobank up 10.7 percent. Athens' benchmark index ATG, which rose 0.9 percent on the day, has now recovered all the ground lost after the election of the anti-austerity party Syriza.
Energy stocks halted their recent sharp rally and fell back along with crude prices. Brent futures were down 3.2 percent at $56.01 a barrel, hurt by renewed concerns over global demand and high stock levels. Oil majors BP and Total lost 1 percent and 1.1 percent respectively. The FTSEurofirst 300 index of top European shares ended 0.6 percent higher, at 1,487.20 points.
Around Europe, Britain's FTSE 100 index lost 0.2 percent, dragged back by falling resource-related stocks, while Germany's DAX index gained 0.2 percent and France's CAC 40 added 0.4 percent. Switzerland's SMI index outperformed, rising 1.9 percent, boosted by rallying shares in luxury goods makers and as the Swiss franc dipped against the euro, seen as positive for Swiss exporters.
Syngenta AG rose 3.9 percent. The world's largest maker of crop chemicals reported an unexpected rise in operating earnings and raised its dividend, as price increases partly offset the effect of declines in the Russian and Ukrainian currencies. Spain's BBVA gained 2.8 percent after the bank posted better-than-expected revenues from lending in the fourth quarter and said it would now aim to grow more in its domestic market, where losses on loans are dropping. BBVA's results echoed a positive update from its larger peer Banco Santander on Tuesday, signalling improving trends in Spain.