European shares rise to 29-month high

08 Feb, 2011

European shares rose on Monday to their highest close since September 2008, with miners gaining as copper hit a fresh record high on supply concerns and after Randgold Resources profit jumped. The pan-European FTSEurofirst 300 index of top shares closed up 1 percent at 1,176.81 points. It also rose on Friday after a mixed US nonfarm payroll report.
"Moving on from where it left off last week, I think the equity markets are focusing on the growth that is out there and are being supported by strong earnings," Mike Lenhoff, chief strategist at Brewin Dolphin, said. Miners extended gains from the previous session as copper and tin hit record highs on supply concerns.
The STOXX Europe 600 Basic Resources rose 2.4 percent, while Randgold Resources gained 2.6 percent after the gold producer said it would raise its dividend 18 percent on the back of 43 percent higher full-year profit. Xstrata, due to report on Tuesday, rose 3.6 percent, helped by bullish broker comment by Citigroup and Nomura. Top global miners were expected to report a doubling in profit for the December half, thanks to booming iron ore and copper sales.
Technology stocks featured among the best performers, with the STOXX Europe 600 Technology rising 1.7 percent. Nokia gained 2.8 percent as a delayed top of the range model finally started deliveries and hopes grew for a strategy revamp due later this week.
Chip designer ARM Holdings was 3.9 percent higher after Numis Securities raises its target price by 10 percent. Across Europe, the FTSE 100 index gained 0.9 percent, Germany's DAX was up 0.9 percent and France's CAC 40 was 1.1 percent higher.

Read Comments