* FTSEurofirst 300 up 0.1 pct
* Miners rise after Anglo, Anto post record copper output
* Early gains pared as Turkish rate hike relief limited
* Fed bond-buying reduction could spook markets again
By Alistair Smout
LONDON, Jan 29 European shares rose on
Wednesday, buoyed by positive updates from miners and an
increased appetite for riskier stocks after Turkey acted to
defend its currency, though relief in emerging markets looked to
Miners Anglo American and Antofagasta led
the pan-European FTSEurofirst higher, rising around 6
percent at one point, after both posted record copper
production, on a quarterly and a yearly basis respectively.
"Commodities are very world growth geared, and as there
seems to have been a turnaround in world growth, that should
benefit commodities such as copper," James Butterfill, global
equity strategist at Coutts, said.
"Given recent weakness in emerging markets, people might
start to question the strength of the (world growth) recovery,
but I think that we should look through that, and see that the
recovery is still intact."
Sectors sensitive to global growth trends drove the market
higher after Turkey's central bank jacked up its interest rates
in a much sharper move than forecast, and stocks with large
emerging market exposure, such as Lafarge,
The pan-European FTSEurofirst was up 0.1 percent at 1,299.80
at 1124 GMT, having fallen 4.2 percent in three sessions into
the beginning of this week as emerging market currencies
However, the index pared much stronger earlier gains, with
strength in the Turkish lira largely reversing.
Some analysts said that if the U.S. Federal Reserve scales
its stimulus package back further as expected at its policy
meeting later on Wednesday, it could reignite concerns about
"(The Turkish rate hike) is a short-term fix. If the Fed
takes another 10 billion out of QE today ... I think (EM
currencies) will probably end up weakening further," Nick
Xanders, who heads up European equity strategy at BTIG, said.
Problems in emerging market economies with large current
account deficits had been hidden by the U.S. stimulus programme,
which unleashed cheap money flows into emerging markets, he
"For the last three years, investors have thought that
they've put the glass slipper on Cinderella, but actually, when
the QE is taken away, you realise it's the ugly stepsister."
The autos and parts sector, which is usually
sensitive to optimism over the economy, gave up good early gains
after Fiat cut its profit guidance after a cooling of
its large Latin American market eroded earnings.
Shares in the Italian carmaker fell 5.8 percent.
Today's European research round-up
Asset returns in 2013: