* FTSEurofirst 300 up 1.4 pct, hits 3-week closing high
* Fed minutes, U.S. earnings improve sentiment
* Mining, technology shares among top gainers
By Atul Prakash
LONDON, Oct 13 (Reuters) - European shares hit a three-week
closing high on Wednesday, driven by strong U.S. company results
and growing expectations of fresh economic stimulus, with miners
topping the risers on hopes of improving raw materials demand.
The FTSEurofirst 300 <> index of top European shares
ended 1.4 percent firmer at 1,086.52 points, the highest close
since Sept. 20. Stocks traded on NYSE Euronext were briefly
affected by technical problems. []
Germany's DAX index <> hit a two-year high, while the
blue-chip Euro STOXX 50 <> rose 2.3 percent to
2,840.55, breaching a key resistance point of 2,740.32, its 61.8
percent retracement of an April high to a May low.
Miners featured among the top gainers, with the STOXX Europe
600 basic resources index <.SXPP> surging 3.4 percent. BHP
Billiton <BLT.L>, Anglo American <AAL.L>, Antofagasta <ANTO.L>,
Rio Tinto <RIO.L> and Xstrata <XTA.L> jumped 4.2 to 5.6 percent.
"Another bumper day of gains as the market gets drunk on the
prospect of quantitative easing mark 2. The bulls have also been
well supported by a great start to the third-quarter earnings
session in the U.S.," said Angus Campbell, head of sales at
Capital Spreads.
"If companies continue to generate cash and good profit
figures, then they will always attract investors. Even though a
large swath of the economy is feeling the pinch and with the
prospect of worse to come, investing in cash-rich, high-yielding
companies is a good place to put any spare funds."
JPMorgan Chase & Co <JPM.N> posted a 23 percent increase in
quarterly profit, beating expectations, while Intel <INTC.O>
forecast on Tuesday upbeat fourth-quarter sales and margins as
resilient demand from emerging markets and corporations offset
weak consumer spending. []
Tech shares advanced, with the STOXX Europe 600 Technology
Index <.SX8P> rising 2.2 percent, also supported by ASML's
<ASML.AS> profit-beating results. ASML climbed 5 percent, while
Infineon <IFXGn.DE>, STMicroelectronics <STM.PA> and Aixtron
<AIXGn.DE> gained 2.4 to 10.2 percent.
FED BOOST
Sentiment improved following the release of minutes of the
U.S. Federal Reserve's Sept. 21 meeting late on Tuesday.
"Global markets have enjoyed the boost that yesterday's FOMC
minutes delivered, with the suggestion that policy makers are
preparing to inject more cash into the economy sending investors
back to more volatile equities," said Yusuf Heusen, senior sales
trader at IG Index.
The minutes showed officials thought the struggling U.S.
recovery might soon need more help. They discussed ways to
provide it, including possible adoption of a price-level target
and buying more longer-term government debt. []
Appetite for risky assets such as equities jumped, with the
VDAX-NEW volatility index <.V1XI> hitting a six-month low. The
lower the index, the higher the market's desire to take risk.
Banks were also stronger. The STOXX Europe 600 banking index
<.SX7P> rose 1.4 percent, while BNP Paribas <BNPP.PA>, UBS
<UBSN.VX> and Deutsche Bank <DBKGn.DE> gained 2.6 to 4 percent.
Asia-focused Standard Chartered <STAN.L>, however, fell 1.7
percent after it launched a $5.3 billion rights issue.
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Graphic on capital hikes: http://r.reuters.com/seh38p
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Macroeconomic numbers also added to the positive tone. U.S.
mortgage applications for home refinancing loans rose for the
first time in six weeks, with demand jumping to its highest
level since late August. []
(Additional reporting by Simon Jessop; Editing by Erica
Billingham)
