Europe stocks hit 3-wk closing high on Chinese data

                                
 * FTSEurofirst300 up 0.4 pct
                                
 * Financials, miners advance; Chinese data supports stocks
                                
 * Sainsbury rises 3.2 percent after results 
                                
 
                                
 By Atul Prakash
                                
 LONDON, Nov 11 (Reuters) - European shares hit a three-week
closing high on Wednesday, boosted by financials and miners and
a renewed appetite for risk following positive macro-economic
data from China.
                                
 Comments from Federal Reserve officials reinforcing the view
that U.S. interest rates will remain near zero for some time
also supported stocks, but pushed the dollar to a 15-month low
before the currency recovered in a technical rebound.
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
ended up 0.4 percent at 1,013.87 points, the highest close since
Oct. 22. The index, which has gained in five of six sessions, is
up 22 percent in 2009 and has surged 57 percent since hitting a
record low in early March.
                                
 Banks were among the top gainers, with France's biggest
retail bank Credit Agricole <CAGR.PA> rising 5.6 percent after
the lender's third quarter net profit fell less than expected
and the bank chose a new chief executive.
                                
 Standard Chartered <STAN.L>, HSBC <HSBA.L>, Lloyds <LLOY.L>,
BNP Paribas <BNPP.PA>, Societe Generale <SOGN.PA>, Natixis
<CNAT.PA> and UBS <UBSN.VX> rose 0.9 to 4.7 percent.
                                
 "Positive macro-economic data from China helped the market
today," said Tammo Greetfeld, equity strategist at UniCredit.
                                
 "The recent macro data has alleviated some concerns and we
are convinced that the equity market will get a tailwind from
positive data in the coming months. We think that the cyclical
high in equities is still to come," he added.
Chinese factory output growth surged to a 19-month high in
October, showing the world's third-largest economy has put the
worst of the global financial crisis behind it. [ID:nPEK212006]
                                
 Insurers also gained. ING <ING.AS> rose 6.6 percent after
posting a third-quarter profit in line with pre-announced
results and said it has received strong interest in its
insurance business, which is up for sale. [ID:nLB95132]
                                
 The VDAX-NEW volatility index <.V1XI> fell to a two-week
low. The lower the index, which is based on sell and buy options
on Frankfurt's top-30 stocks <0#.GDAXI>, the higher is the risk
appetite.
                                
 Across Europe, Britain's FTSE 100 index <.FTSE>, Germany's
DAX <.GDAXI> and France's CAC 40 <.FCHI> rose 0.7 to 1 percent.
                                
 "Progress continues to be tougher going after the recent
giddy gains, but investors remain keen to look beyond the
negatives and keep their appetite for optimism - and risk -
strong," said David Jones, chief market strategist at IG Index.
                                
 
                                
 COMMODS GAIN, SAINSBURY UP 
                                
 Commodity shares were in demand after spot gold <XAU=> hit
record highs near $1,120 an ounce. Aluminium <MAL3> rose 0.3
percent, while zinc <MZN3> gained 0.7 percent.
                                
 BHP Billiton <BLT.L>, Anglo American <AAL.L>, Antofagasta
<ANTO.L>, Rio Tinto <RIO.L>, Xstrata <XTA.L> and Eurasian
Natural Resources <ENRC.L> rose 1.3 to 2.7 percent.
                                
 Energy shares gained as crude oil prices <CLc1> traded near
$79 a barrel. Royal Dutch Shell <RDSa.L>, BG Group <BG.L>, Total
<TOTF.PA> and StatoilHydro <STL.OL> added 0.6 to 1.5 percent.
                                
 "There are signs of gradual economic revival coupled with
low levels of inflation. It is just a favourable environment for
risky assets and risk taking," said Jeremy Batstone-Carr, head
of research at Charles Stanley.
                                
 Among other big movers, E.ON <EONGn.DE>, the world's largest
utility, and power-station owner International Power <IPR.L>
rose 1.2 percent and 2.8 percent respectively after forecasting
a tentative pickup in demand for power as economies start to
recover from the global downturn. [ID:nLB129832]
                                
 Rising customer numbers, growth in non-food ranges and cost
control helped J Sainsbury <SBRY.L> to post first-half profit
towards the top end of forecasts, though Britain's No.3 grocer
signalled a tougher second half. Its shares rose 3.2 percent.
                                
The world's second largest cement maker Holcim <HOLN.VX> was
up 3.7 percent. It said stimulus programmes were set to return
North America to growth in the second half of 2010 as it posted
forecast-beating quarterly figures. [ID:nLA662593]
                                
(Additional reporting by Joanne Frearson; Editing by David
Cowell)