July 9, 2013 / 3:35 PM / in 5 years

Miners boost European shares to 1-mth closing high

LONDON, July 9 (Reuters) - 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.

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