Tuesday, January 18, 2011

European shares hit 28-month high; miners advance

LONDON: European equities hit a 28-month high on Tuesday, Jan 18, supported by resource-related stocks, though fading hopes that euro zone finance ministers will reach an agreement to increase the region's rescue fund limited gains.

At 0811 GMT, the FTSEurofirst 300 index of top European shares was up 0.6 percent at 1,163.71 points after gaining 0.1 percent in the previous session.

Miners topped the gainers' list as copper prices rose on a weaker dollar and on supply concerns. The STOXX Europe 600 Basic Materials index gained 1.6 percent, while Rio Tinto rose 2.3 percent after reporting it produced record quantities of iron ore last year.

"The markets are waiting for an opportunity to move ahead rather than looking for an opportunity to take profits," said Mike Lenhoff, chief strategist at Brewin Dolphin.

"The backdrop is still very supportive. This week is a very big week for corporate earnings in the U.S. and on balance, the results should be quite good."

Investors kept an eye on the sovereign debt situation. The euro zone ministers showed no indications on Monday that they were closing in on any firm decisions. The chairman of euro zone finance ministers, Jean-Claude Juncker, said they discussed many options, but favoured none. - Reuters


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