European shares drift higher; miners support

LONDON, Aug 16 (BestGrowthStock) – European equities edged higher on
Monday as miners tracked metals prices, which rose on lower
inventories and on hopes of strong commodity demand from China,
though worries about economic recovery limited gains in shares.

Latest figures showed Japan’s economic growth slowed sharply
in April-June from the previous two quarters. The data came just
days after a darker assessment of the U.S. economy by the
Federal Reserve.

At 0702 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was up 0.2 percent at 1,047.80 points. Over the
last week, the index fell 1.1 percent, its biggest decline in
six weeks.

“I think it’s just a technical reaction. People think that
may be the correction has been overdone,” said Koen De Leus,
economist at KBC Securities, adding the market was getting some
support from a rise in commodity prices.

“But there is nothing to cheer about. Economic figures,
certainly in the United States, are really disappointing and
pointing towards going more and more close to a double dip. This
time, it doesn’t hurt to be little bit cautious.”

Miners were among the top gainers, with Rio Tinto (RIO.L: ),
Xstrata (XTA.L: ) and Anglo American ( AAL.L: ) rising 0.4 to 0.9
percent.

(Reporting by Atul Prakash)

European shares drift higher; miners support