Europe shares rise on BoE QE hopes; miners bounce

* FTSEurofirst 300 index rises 0.2 percent

* Novo Nordisk gains on U.S. setback for rivals

* Investors eye British government spending review

* For up-to-the minute market news, click on [STXNEWS/EU]

By Joanne Frearson

LONDON, Oct 20 (BestGrowthStock) – European shares edged higher on
Wednesday after the Bank of England’s Monetary Policy Committee
minutes boosted expectations of more quantitative easing, while
Novo Nordisk (NOVOb.CO: ) gained on news of a rival’s setback.

However, traders said rises could be limited ahead of a
British government spending review due at 1130 GMT.

British public borrowing unexpectedly hit a record high for
September and the coalition government will unveil its
much-anticipated review that aims to cut public spending by 83
billion pounds by 2015.

By 0945 GMT, the pan-European FTSEurofirst 300 (.FTEU3: )
index of top shares was up 0.2 percent at 1,084.72 points after
slipping 0.5 percent on Tuesday following China’s surprise rise
in interest rates.

“There is apprehension going into the UK spending review.
This will dominate stocks in Europe as the UK is one of its
biggest trading partners — ramifications will be felt
throughout Europe,” Angus Campbell, head of sales at Capital
Spreads said.

“Welfare is likely to see the biggest cuts, which could have
an impact on consumer spending.”

Novo Nordisk gained 6.6 percent after U.S. health regulators
declined to approve a diabetes drug being developed by peers
Amylin Pharmaceuticals (AMLN.O: ) and Eli Lilly (LLY.N: ), boosting
prospects for its key new product hope Victoza.

Miners also provided support for the market, recovering some
of Tuesday’s losses.

BHP Billiton (BLT.L: ) gained 1.2 percent after it posted a 6
percent rise in quarterly iron ore output and said it was
running most of its assets at full capacity. [ID:nSGE69I0L9]

Global miner Rio Tinto (RIO.L: ) was 1.4 percent higher after
it approved a $3.1 billion iron ore expansion, staking a claim
to become the world’s top producer and defying industry concerns
over a new Australian mining tax. [ID:nSGE69J01W]


On the downside, Danish wind turbine maker Vestas Wind
Systems (VWS.CO: ) fell 3.5 percent after two banks lowered their
target prices for its stock and Belgian turbine gearbox maker
Hansen Transmissions (HSNT.L: ) cuts its sales outlook.

“The (Bank of England) minutes provide further confirmation
that the Committee is moving closer to recommencing quantitative
easing,” Samuel Tombs of Capital Economics said.

The banking sector reversed earlier losses, with the STOXX
Europe 600 Banks (.SX7P: )index up 0.2 percent after the minutes
from the Oct. 6-7 policy meeting reinforced expectations the
central bank is edging towards further easing. [ID:nLDE69J0S9]

They had fallen on concerns banks may be forced to take back
mortgages after investors on Tuesday accused Bank of America
(BAC.N: ) of inappropriately bundling some home loans into more
than $47 billion of bonds.

“There are jitters after the Bank of America mortgage
foreclosure worries,” Will Hedden, sales trader at IG Index,
said. “We are likely to see a weakness in banking stocks.”

Across Europe, the FTSE 100 (.FTSE: ) index was up 0.1
percent, Germany’s DAX (.GDAXI: ) was 0.2 percent higher and
France’s CAC 40 (.FCHI: ) was flat.

(Reporting by Joanne Frearson; editing by Simon Jessop and
David Hulmes)

Europe shares rise on BoE QE hopes; miners bounce