LONDON, July 3 European shares provisionally
closed at a two-month high on Tuesday, led by gains in commodity
stocks such as ArcelorMittal, as expectations that
policymakers may take further steps to tackle the region's debt
crisis supported equities.
The FTSEurofirst 300 index rose around 1 percent to
1,045.27 points, which would be its highest closing level since
ending at 1,048.07 points on May 1.
The Euro STOXX 50 rose 1.1 percent, continuing a
rally from last Friday when European Union leaders took new
steps to tackle the sovereign debt crisis and allowed the euro
zone bailout fund to inject cash into struggling banks.
"The fact that the banks could be recapitalised directly has
given the markets the direction they were looking for," said
Securequity sales trader Jawaid Afsar.
"But I suspect that the upside from here is limited to
another 100 points. We have to be careful, there are still
fundamental problems out there and we would look to take a quick
exit on any signs of weakness," he added.
Steelmaker ArcelorMittal gained 5.5 percent, boosted by an
upgrade from broker Kepler which raised its recommendation on
the stock to "hold" from "reduce."