LONDON May 28 European shares rose on Tuesday,
with investors in Britain catching up with the previous day's
gains after returning from a long weekend, and with comments by
a top European Central Bank official improving sentiment.
At 0706 GMT, the FTSEurofirst 300 index of top
European shares was 0.8 percent higher at 1,239.54 points, while
Britain's blue chip FTSE 100 index gained 1.1 percent on
expectations that central banks would continue to stick with
their stimulus measures for some more time.
The FTSEurofirst 300 climbed to a 5-1/2-year high of
1,258.09 last week.
"I expect the major markets to test resistance levels of
last week as investors are still seeking higher highs and new
record levels in the near term, whilst the central banks are
continuing their quantitative easing operations," Tom Robertson,
senior trader at Accendo Markets, said.
The European Central Bank's Executive Board member Joerg
Asmussen said on Monday the bank will stick to its expansive
monetary policy for as long as necessary.
Cyclical sectors were in demand, with travel and leisure
shares rising 1.2 percent and banks rising 1.1
On the negative side, state-owned lender Bankia
fell 10 percent despite a multi-billion-euro cash injection, as
expectations of a quick recovery faded following tough business
conditions and a challenging restructuring plan.