Telcos, miners fuel early European share gains
PARIS, July 23
PARIS, July 23 (Reuters) - European shares climbed in early trade on Tuesday, hitting fresh seven-week highs, with Dutch telecoms group KPN jumping 12 percent after selling its German unit E-Plus.
At 0703 GMT, the FTSEurofirst 300 index of top European shares was up 0.4 percent at 1,215.56 points, a level not seen since early June.
"The KPN news is good for telecoms overall, it fuels the M&A fever recently seen in the sector," David Thebault, head of quantitative sales trading at Global Equities, said.
"Earnings have also been relatively good so far, although the bulk of results still has to come. We'll have a better idea of the big picture by the end of the week, with the focus mostly on the guidance."
Miners also helped fuel the early gains, after media reports from China that said the government would use railway projects to help cut gluts in steel, cement and other construction materials, and that Beijing would not permit economic growth to sink below 7 percent.