LONDON, July 9 Miners powered European shares to
their highest close in a month on Tuesday after U.S. firm
Alcoa's results and bullish outlook boosted sentiment
towards the sector.
The FTSEurofirst 300 provisionally closed up 9.96
points, or 0.8 percent, at 1,189.64, extending a rebound that
has seen the index rally more that 6.5 percent since June lows.
Basic resources jumped 2.7 percent after U.S.
aluminum maker Alcoa unveiled a larger-than-expected adjusted
second-quarter profit and forecasted higher demand.
"There are seeds of recovery out there now that were not
there a year ago. I think we are pretty close to a turning point
in earnings downgrades for European companies," Robert Quinn,
chief European equity strategist, said.
"The weakness we have seen in equity markets recently has
coincided with pretty good fundamentals and investor sentiment
has cooled down from peaks earlier this year, so you have a
sweet spot for European equities," he said.