European shares hit 3-week closing high

LONDON, March 30 (Reuters) – European shares rose to a
three-week closing high on Wednesday after a U.S. jobs report
buoyed investor expectations over the pace of economic recovery
in the world’s largest economy.

The in-line ADP report showed an addition of 201,000 private
sector jobs in March and kept investors positioned for a
similarly upbeat reading for Friday’s government-compiled
non-farm payrolls data, which analysts said could help push
equities up from their recent ranges. [ID:nN30275708]

The pan-European FTSEurofirst 300 (.FTEU3: Quote, Profile, Research) index of top
shares provisionally closed 0.7 percent higher at 1,133.61
points, its highest closing level since March 9.

Technical indicators also showed the market had scope to
push higher before being deemed overbought, with the 14-day
relative strength index (RSI) on the Euro STOXX 50 (.STOXX50E: Quote, Profile, Research)
hitting 54.9 on Wednesday, as it eases further from oversold
territory of below 30, hit earlier in March.

“We have worked through the oversold conditions and
technically the markets are in a very strong and favourable
condition to respond to good newsflow. If we do get good
non-farm payrolls, the market will do very, very well,” said
Mike Lenhoff, chief strategist at Brewin Dolphin.

Mining shares were among the heavy gainers, with Vedanta
Resources (VED.L: Quote, Profile, Research) up 3.4 percent, with traders citing a bullish
note from Morgan Stanley as being behind the India-focused
miner’s gains.
(Reporting by Harpreet Bhal)

European shares hit 3-week closing high