* FTSEurofirst 300 up 0.4 pct; hits 26-month highs
* Strong macroeconomic data improves market sentiment
* Basic resources, automobile shares among top gainers
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, Dec 13 (Reuters) - European shares rose for a sixth
straight session to a 26-month high on Monday as upbeat
U.S. and Chinese data boosted investors' risk appetite, and on
hopes that Beijing may not raise interest rates anytime soon.
By 0900 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.4 percent at 1,130.23 points after
rising up to 1,131.12, the highest since September 2008. The
index, which rose in the last two weeks, is up 8 percent so far
this year.
"Market sentiment is bullish because of strong economic data
and some positive policy announcements in the United States in
the past weeks," Koen De Leus, strategist at KBC Securities,
said, referring to a plan announced by the U.S. administration
this month to extend all Bush-era tax cuts for two years.
"But I don't think there are too many investors willing to
take big risks in the remaining days of the year. It could mean
that people are going to secure their profits. The market could
become pretty volatile in the coming days due to lower volumes."
The Thomson Reuters/University of Michigan's consumer
sentiment index showed on Friday a better-than-expected rise in
December.
Miners topped the gainers' list as copper hit a record high
following weekend data, which showed China's industrial output
in November beat expectations.
The STOXX Europe 600 basic resources index <.SXPP> rising
1.2 percent. Anglo American <AAL.L> rose 1.5 percent, while
Antofagasta <ANTO.L> was up 1 percent.
China raised the minimum amount of money lenders must keep
in reserve for a third time in a month. Beijing, however, held
back from lifting interest rates, a relief for some but a move
many still expect will happen at some stage.
"The relentless demand for copper and the strong move in its
price is having a telling effect on stocks this morning. But
overall volumes are low and are likely to remain muted for the
month as many investors await the New Year to deploy funds,"
said Manoj Ladwa, senior trader at ETX Capital.
Volumes on the FTSEurofirst 300 were 4 percent of its 90-day
daily average.
TECHNICAL OUTLOOK
Recent gains in European shares improved technical outlook,
with the Euro STOXX 50 <>, the euro zone's blue-chip
index, rising 0.3 percent to 2,848.12 points.
The index moved further away from its 50-day moving average
and a 61.8-percent Fibonacci retracement of a fall from a high
in April to a low in May.
Automakers also featured among the top gainers on hopes that
an economic recovery would boost demand for vehicles. The STOXX
Europe 600 Automobiles & Parts <.SXAP> index rose 1 percent,
Peugeot <PEUP.PA> gained 1.9 percent, while Renault <RENA.PA>
rose 2.8 percent.
Among individual movers, British oilfield services company
Wellstream Holdings <WSML.L> rose 5 percent after General
Electric <GE.N> said it would buy the company for about 800
million pounds ($1.3 billion). []
Credit Suisse <CSGN.VX> was up 0.2 percent. The Financial
Times said the company may issue up to $30 billion in
contingent-capital bonds over the next several years to help
shore up its finances ahead of the start of new bank rules.
[]
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<>, France's CAC 40 <>, Ireland's ISEQ <.ISEQ>,
Spain's IBEX <>, Portugal's PSI 20 <> and Italy's
FTSE MIB <.FTMIB> rose 0.1 to 1.1 percent.
(Editing by Sharon Lindores)
