* FTSEurofirst 300 closes 0.2 pct higher
* Barclays gains on forecast-beating results
* Danone rises as sales beat expectations
* Fall in copper price weighs on miners
By Brian Gorman
LONDON, Feb 15 (Reuters) - European shares edged to a fresh
29-month closing high on Tuesday, as Barclays <BARC.L> led the
banking sector up on the back of forecast-beating profits.
Gains for key indexes were limited as miners gave up some of
their recent advances.
The pan-European FTSEurofirst 300 <> index of top
shares rose 0.2 percent to 1,180.05 points, its highest close
since early September 2008.
British bank Barclays gained 5.8 percent after it reported a
32 percent rise in annual earnings and detailed how it would
boost returns. []
Other banks to rise included Societe Generale <SOGN.PA>, up
2.2 percent, ahead of its results on Wednesday. BNP Paribas
<BNPP.PA>, Deutsche Bank <DBKGn.DE>, Intesa SanPaolo <ISP.MI>
and UniCredit <CRDI.MI> rose between 2.2 and 3.3 percent.
"Barclays was reassuring in how they said they will achieve
a 15 percent return on capital," said Colin McLean, managing
director at SVM Asset Management in Edinburgh.
"But markets are more likely to have a setback before they
go higher. A lot of cash has been committed to the market and
that will be exhausted in the short term.
French food group Danone <DANO.PA> rose 3.3 percent after
2010 sales beat forecasts and it set higher 2011 sales goals
than analysts expected. []
Heavyweight miners were among the biggest losers. Copper
fell from record highs on concerns further monetary tightening
in China may affect base metals demand, and as worries about the
political situation in the Middle East took the edge off risk
appetite.
BHP Billiton <BLT.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L>
fell between 2.2 and 2.8 percent. Anglo American <AAL.L> slid
3.8 percent after Citigroup downgraded it to "hold" from "buy".
COMFORT
Deutsche Boerse <DB1Gn.DE> fell 2.4 percent after providing
further detail on its takeover of NYSE Euronext <NYX.N>, down
2.8 percent, to create the world's largest exchange operator in
a deal worth $10.2 billion. []
On Wall Street, the S&P <.SPX> was down 0.3 percent around
the time European bourses were closing. Sales at U.S. retailers
increased less than expected in January amid weak receipts at
building material and restaurant outlets, a government report
showed. []
The euro zone economy ended last year with stable growth,
missing expectations as expansion rates in the region's three
largest nations fell short of forecasts, while Greece and
Portugal contracted. []
Earlier, the market got some support after the German ZEW
economic sentiment indicator rose in February, indicating
confidence in the country's recovery.
"We had some reassurance from the ZEW figures, there had
been comfort in the Chinese inflation figures and UK inflation
data was as expected," Philip Isherwood, European equities
strategist at Evolution Securities, said.
UK consumer price inflation was in line with economists'
forecasts. Earlier, Asian markets had been steady after Chinese
inflation came in lower than forecast in the year to January.
[] []
Across Europe, the FTSE 100 <> index fell 0.4 percent,
while Germany's DAX <> and France's CAC 40 <> rose
0.1 and 0.3 percent respectively.
(Additional reporting by Joanne Frearson; Editing by David
Hulmes)
