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European shares close higher



02 November 2009 @ 04:41 pm BST

LONDON - European shares closed higher on Monday, boosted by better-than-expected U.S. manufacturing and pending home sales data, with commodities and banks the major gainers.

The pan-European FTSEurofirst 300 <.FTEU3> index of top shares provisionally closed up 0.3 to 979.70 points.

"It has been an amazing turn around. The ISM was a very good strong figure. Economic numbers are surpassing expectations. Today is a jubilant reaction to the news flow which is very supportive," said Mike Lenhoff, strategist at Brewin Dolphin.

The markets rebounded after data showed U.S. manufacturing sector grew in October for the third consecutive month and pending sales of previously owned U.S. homes unexpectedly rose in September.

Energy stocks gained as crude edged 1.3 percent higher. BG Group , BP and Total were up 1.3 to 2.2 percent.

Miners were among the top movers as gold rose above $1,050 an ounce, copper ticked up 0.2 percent and aluminium was 0.6 percent higher.

Anglo American , Antofagasta , BHP Billiton , Eurasian Natural Resources Corporation , Rio Tinto and Xstrata were up 2.5 to 4.9 percent.

Banking stocks recovered to feature among the best performers. HSBC , BNP Paribas and UniCredit gained 1.5 to 3.3 percent.

(Reporting by Joanne Frearson)

© 2009 Thomson Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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