LONDON, April 9 European shares were led up by
miners on Tuesday, as investors hoped for more accommodative
monetary policy from China after it reported benign inflation
data and U.S. firm Alcoa posted solid earnings.
The FTSEurofirst 300 was up 5.51 points, or 0.5
percent, at 1,170.30 by 0706 GMT.
The index has found support around its 38.2 percent
retracement level of 1,154, which it struck after three days of
declines last week on the back of rising euro zone debt tensions
and weak U.S. jobs data.
The beaten-down mining sector rose 1.9 percent after
no.1 metals consumer China reported lower-than-expected
inflation data, fuelling expectations that its monetary stimulus
would stay in place and help support economic growth, improving
the outlook for demand in the sector.
Also helping was U.S. aluminium group Alcoa, viewed
as a bellwether for the materials sector, which posted
better-than-expected first-quarter profit.
With the economic news flow light in the coming days and
growth anemic in Europe, the U.S. earnings season is likely to
have a bearing on sentiment as investors await evidence that
earnings can be support the market at these levels.
"With expectations once again lowered it may not be too
difficult (to see) these earnings beating expectations," Jawaid
Afsar, sales trader at SecurEquity, said.
"However, we will need to see what companies have to say
about the outlook," he said.