* FTSEurofirst 300 up 0.7 pct; ends above 1,100 points
* Mining, oil shares up on firmer commodity prices
* Greek banks slip; Greek spreads hit euro lifetime high
By Atul Prakash
LONDON, April 6 (Reuters) - European stocks hit an 18-month
closing high for a second straight session on Tuesday, boosted
by commodity shares, which advanced on expectations of improving
demand outlook for metals and oils following recent robust data.
However, the gains in equities were capped as a number of
newspaper reports cast doubt on Greece's ability to emerge from
its fiscal crisis.
The FTSEurofirst 300 <> index of top European shares
ended 0.7 percent higher at 1,101.43 points, the highest close
since September 2008. It has jumped 70 percent from a record low
in March last year.
Miners tracked higher copper prices, which hit a 20-month
high, as robust U.S. jobs, services sector and housing data in
past days has lifted the demand outlook for base metals. Gold
<XAU=> rose to record highs in euro terms on fears over the
health of peripheral euro zone economies.
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 1.4 to 3.4 percent.
"Encouraging U.S. economic numbers helped the market but
other issues like Greece are putting a lot of weight on the
market," said Koen De Leus, economist at KBC Securities.
"The Greek situation is not yet solved. People are quite
correct to think that it is far from over. The credit default
swaps have also risen and that's a very clear signal that
investors really don't trust."
Greek banks <.FTATBNK> fell 4.1 percent, with a flurry of
news suggesting Athens' debt crisis was worsening. A top Greek
finance ministry official later said the country was not seeking
to amend a European Union-International Monetary Fund safety net
agreement, trying to calm markets that ditched Greek assets and
the euro. However, investors remained cautious.
The premium investors demand to hold 10-year Greek
government bonds rather than euro zone benchmark German Bunds
rose to a euro record high of 408 basis points. []
National Bank of Greece <NBGr.AT>, Bank of Piraeus
<BOPr.AT>, EFG Eurobank <EFGr.AT> and Alpha Bank <ACBr.AT> fell
2.3 to 5.1 percent.
"This is a long-term problem. The crisis is not over because
the economy is still contracting. The structural reforms will
still need to be implemented. The political situation is still
uncertain," said Diego Iscaro, economist at IHS Global Insight.
OILS BOOST ENERGY
However, energy shares gained as crude oil <CLc1> rose to a
fresh 18-month high. BP <BP.L>, Royal Dutch Shell <RDSa.L>, BG
Group <BG.L>, Tullow Oil <TLW.L>, Repsol <REP.MC>, Total
<TOTF.PA> and StatoilHydro <STL.OL> added 1.1 to 4 percent.
Investors grabbed commodities on hopes the U.S. economy is
strengthening, and demand for metals and oils will rise. Data
showed on Friday the economy added the largest number of jobs in
three years. Other reports later showed services, the economy's
largest segment, grew above expectations in March and pending
home sales rose more than expected in February.
"There is a sense that the economy is beginning to turn the
corner which is helping to support the market at the moment,"
said Peter Dixon, economist at Commerzbank.
Among individual shares, Renault <RENA.PA> rose 3.9 percent.
French Industry Minister Christian Estrosi said the French
carmaker, Japanese alliance partner Nissan <7201.T> and
Germany's Daimler <DAIGn.DE> will unveil partnership plans on
Wednesday and the three companies have scheduled a news
conference. []
Mining group Eramet <ERMT.PA> jumped 7.1 percent after Exane
BNP Paribas upgraded it to "neutral" from "underperform".
Across Europe, Germany's DAX <> was up 0.3 percent,
while France's CAC 40 <> rose 0.5 percent.
Britain's FTSE 100 index <> rose 0.6 percent. Prime
Minister Gordon Brown launched a month-long election campaign
likely to be dominated by the economy. It is shaping up as the
most unpredictable contest since 1992. []
(Additional reporting by Joanne Frearson in London and George
Georgiopoulos in Athens; editing by Karen Foster)
