European shares rebound sharply

By Brian Gorman

LONDON (BestGrowthStock) – European shares almost recovered the previous session’s losses on Wednesday in a broad market rebound with miners notching up strong gains.

The pan-European FTSEurofirst 300 (.FTEU3: ) index of top shares rose 2.4 percent to close at 972.17 points, after falling 2.4 percent in the previous session to its lowest close since September.

The rebound “was to be expected given how far things have fallen,” said Andy Lynch, fund manager at Schroders. “It will remain difficult for markets, as there’s too much debt around.”

The FTSEurofirst 300 is still down more than 12 percent from a mid-April peak on worries over Europe’s debt crisis.

Mining companies Anglo American (AAL.L: ), Antofagasta (ANTO.L: ), BHP Billiton (BLT.L: ), Rio Tinto (RIO.L: ), Lonmin (LMI.L: ) and Xstrata (XTA.L: ) rose strongly, helped by a report the Australian government will dampen the impact of its proposed super tax on resource companies.

Rio gained 7.3 percent.

CONFIDENCE BOOST

Crude futures also surged, up more than 3 percent even as data showed U.S. inventories rising, and the euro fell (Read more about the trembling euro. ) for a third straight session against the dollar, still pressured by fears Europe’s debt crisis could hurt global growth.

Energy companies to gain included Total (TOTF.PA: ), BP (BP.L: ), BG (BG.L: ), Repsol (REP.MC: ) and StatoilHydro (STL.OL: ), up between 1.4 and 3.4 percent.

U.S. economic data helped boost confidence. New home sales surged to their highest level in nearly two years in April, while orders for long-lasting manufactured goods rose sharply, pointing to resilience in the economic recovery.

“The data seems to be saying that the world is doing okay at the moment, but so it ought to be with the amount of stimulus that’s being thrown at it,” said Lynch.

Across Europe, Britain’s FTSE 100 (.FTSE: ), Germany’s DAX (.GDAXI: ) and France’s CAC 40 (.FCHI: ) ended the day between 1.6 and 2.3 percent higher.

On Wall Street the Dow Jones (.DJI: ), S&P 500 (.SPX: ) and Nasdaq Composite (.IXIC: ) were up between 0.9 and 1.6 percent at around the time European bourses were closing.

The STOXX Europe 600 banking index (.SX7P: ) was up 2 percent after falling 3.7 percent in the previous session. Bank of Ireland (BKIR.I: ), Allied Irish Banks (ALBK.I: ) and Barclays (BARC.L: ) rose between 4.7 and 10.5 percent.

Lloyds Banking Group (LLOY.L: ) and Royal Bank of Scotland (RBS.L: ) were also given a boost from upgrades by Credit Suisse and gained 6.7 percent and 5.6 percent respectively.

Among individual stocks, Portugal Telecom (PTC.LS) jumped 6 percent after a Telefonica (TEF.MC: ) executive threatened a hostile bid for the Portuguese company.

Stock Today

(Editing by David Holmes)

European shares rebound sharply