Europe shares rise for 4th day on US data, Greece

Wed Mar 3, 2010 12:51pm EST

* FTSEurofirst 300 closes 0.8 percent higher

* Standard Chartered leads banks up after results

* For up-to-the-minute market news, click on [STXNEWS/EU]

By Brian Gorman

LONDON, March 3 (Reuters) - European shares rose for the fourth straight day on Wednesday, boosted by upbeat U.S. economic data, optimism on Greece's deficit, and with Standard Chartered (STAN.L) rising after results.

The pan-European FTSEurofirst 300 .FTEU3 index of top shares rose 0.8 percent to 1,035.56 points, its highest close since Jan. 21.

The benchmark index is up more than 60 percent from a record low it hit on March 9, 2009.

Banks added most points to the index. StanChart rose 5.3 percent after meeting expectations with a 13 percent jump in 2009 profit, as strong investment banking growth in its core Asian markets offset a jump in bad debts in the Middle East. [ID:nLDE62202N]

UniCredit (CRDI.MI) rose 4.2 percent after results at Pekao BAPE.WA, in which it has a majority stake, beat forecasts. Other banks to rise included Banco Santander (SAN.MC), Barclays (BARC.L), Lloyds (LLOY.L) and UBS (UBSN.VX) up between 2 percent and 2.7 percent.

The U.S. services sector grew in February at its fastest pace in more than two years, and was well ahead of forecasts, according to an industry report. [ID:nLDE6221ZH]

Jobs shed by U.S. private employers in February dropped from the prior month, while U.S. firms' planned layoffs fell to the lowest since 2006, suggesting the job market may be starting to recover. [ID:nN03225657]

European Commission President Jose Manuel Barroso said that Greece's extra 4.8 billion euros ($6.55 billion) in spending cuts and tax increases, which equate to 2 percent of gross domestic product, would be backed by European solidarity. [ID:nLDE6221S5]

"The market is responding positively, and quite rightly, to the Greek fiscal package," said Bob Parker, vice-chairman of asset management at Credit Suisse.

"There's a good correlation between equity markets, and the spread between German bunds and Greek bonds. Markets believe the negotiations are going to succeed."

"The services sector coming in ahead of expectations also helped," Parker said. "There will be a positive U.S. growth surprise in the first half of the year."

Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI ended the day between 0.7 and 0.9 percent higher.

Wall Street was higher around the time European bourses were closing. The Dow Jones .DJI, S&P 500 .SPX and Nasdaq Composite .IXIC were up between 0.5 percent and 0.6 percent.

MINERS, OILS GAIN

Energy and mining shares gained as the dollar weakened, boosting the price of metals and oil.

Anglo American (AAL.L), Antofagasta (ANTO.L), Kazakhmys (KAZ.L), Lonmin (LMI.L) and Xstrata (XTA.L) rose between 3.7 percent and 5.7 percent.

Crude CLc1 topped $81. Total (TOTF.PA), BP (BP.L), BG (BG.L), Royal Dutch Shell (RDSa.L) and Repsol (REP.MC) rose between 0.4 and 0.7 percent.

Prudential (PRU.L), up 2.6 percent, was among insurers to rise. The company's shares fell 19 percent over the previous two sessions, after it agreed a $35.5 billion takeover of the Asian life business of AIG (AIG.N), requiring a $21 billion rights issue.

Legal & General (LGEN.L) rose 5.1 percent. Aviva (AV.L) rose 2.9 percent, ahead of full-year results on Thursday.

Mobile telecoms heavyweight Vodafone (VOD.L) gained 1.5 percent as BofA Merrill Lynch added the stock to its influential "Europe 1" investment list. [ID:nLDE6220JB]

Among other individual movers, Adidas ADSG.DE, the world's No. 2 sports goods maker, lost 4.1 percent. It said it is counting on the soccer World Cup and the revival of its Reebok brand to return it to growth this year after posting a weak finish to 2009. [ID:nLDE61P1UY]

Adecco (ADEN.VX), the world's biggest staffing company, rose 4 percent after the company said its major markets of France and North America had returned to growth in the first two months of 2010 and that it expected conditions to improve further. (Editing by Rupert Winchester)

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Comments (1)
pbrockl wrote:
two day old news is hardly news. try updating your website.

Mar 04, 2010 1:49pm EST  --  Report as abuse
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