LONDON Dec 11 European shares rose on Tuesday,
with a key index scaling fresh 18-month highs thanks to signs of
improvement in the German economy and traditional year-end flows
Sectors dependent on solid economic growth - such as autos
, construction and basic resources -
outperformed after the ZEW indicator pointed to a sharp
improvement in German investor morale this month.
The upbeat news from Germany - seen as the strong spot in
Europe - fed into broader seasonal optimism in equity markets,
which have posted December gains in 12 of the last 15 years.
"We are enjoying the seasonality now. In equity markets in
December, the trend is to the upside," said Veronika Pechlaner,
investment manager at Ashburton, which is 'overweight' on
"We have seen some global allocators moving funds into
Europe and that is clearly an environment that has helped. But
it's clearly vulnerable to any set backs."
The pan-European FTSEurofirst 300 provisionally
closed up 0.4 percent at 1,139.17 points, its highest finish
since mid-2011 and taking its gains for the past three weeks to