By Amanda Cooper
LONDON, March 4 (Reuters) - European shares broke four days
of declines on Tuesday as surging commodity prices helped mining
shares and financials staged a recovery from recent lows.
Miners Anglo American <AAL.L>, Rio Tinto <RIO.L> and Lonmin
<LMI.L> rose between 0.9 and 1.2 percent as gold and platinum
roared to fresh record highs.
German chemicals and drugs group Bayer <BAYG.DE> shed 4.4
percent, making it the largest weighted drag on the market,
after a U.S. district court ruled on Monday against the validity
of Bayer Schering Pharma's patent for its contraceptive drug
Yasmin.
Switzerland's Adecco <ADEN.VX>, the world's largest staffing
firm, rallied by nearly 1.5 percent after saying it expected its
troubled French operation to improve by mid-2008 and net profit
did not fall as much as feared.
By 0849 GMT the FTSEurofirst 300 index <> of top
European shares was up 0.8 percent at 1,308.64 points, echoing a
modest late rally in U.S. equities on Monday that left Wall
Street flat after yet another string of weak economic data.
"What we are really looking for the rest of the week are
more the macro figures and in part the results from U.S.
financials," said Edmund Shing, a strategist with BNP Paribas in
Paris.
"If they come in worse than expected that could be the straw
that broke the camel's back."
Financials in Europe were the top positive influence on the
FTSEurofirst as Royal Bank of Scotland <RBS.L>, Societe Generale
<SOGN.PA> and BNP Paribas <BNPP.PA> rose between 0.9 and 2.4
percent.
The mining sector posted the strongest gains in Europe,
rising 1.9 percent as gold <XAU=> neared $1,000 an ounce and
platinum <XPT=> hovered near $2,300, while most base metal
prices eased.
BHP Billiton <BLT.L>, the world's largest mining group, is
talking to sub-underwriting banks on a record $55 billion loan
backing its hostile bid for rival Rio Tinto, according to
banking sources.
BHP shares were up 1.7 percent.
Oil prices eased a touch <CLc1> to stand around $102 a
barrel. Building concern over commodity price inflation and its
effect on economic growth dragged on shares in oil majors,
leaving BP <BP.L>, Total <TOTF.PA> and Royal Dutch Shell
<RDSa.AS> between flat and down 0.1 percent.
SHORT-LIVED RELIEF?
The FTSEurofirst 300 has fallen by about 14 percent this
year as concern over the impact from the global credit crunch on
the financial sector in particular, has hit equities.
ING said on Tuesday it had cut its price target on the
broader DJ Stoxx 600 <> for the last quarter of this year.
"We have reduced our target for the Stoxx 600 for 4Q08 from
420 to 350 because earnings visibility remains very low," said
ING strategists in a note.
"Even though we believe the market is discounting much lower
numbers than the current consensus, it is hard to see equities
regaining previous highs until estimate momentum turns positive
again." The Stoxx 600 index was trading up 0.6 percent at
316.23, having shed about 13 percent so far this year.
Other stocks on the move included utilities, with Germany's
E.ON <EONG.DE> rising 1.8 percent to rank among the top weighted
gainers on the FTSEurofirst, along with Iberdrola <IBE.MC> and
France's Suez <LYOE.PA>, which rose between 0.8 and 3.0 percent.
(editing by Elizabeth Fullerton)
