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U.S. retail data helps Europe stocks end higher

Published 09/15/2009, 11:39 AM
Updated 09/15/2009, 11:42 AM
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PARIS, Sept 15 (Reuters) - European stocks ended higher on Tuesday, led by banks such as HSBC, as robust U.S. monthly retail sales reignited hopes of a speedy economic recovery and helped the market resume its two-week rally.

The FTSEurofirst 300 index of top European shares unofficially closed 0.1 percent higher at 991.76 points, gaining ground for the seventh time in eight sessions.

Data showed on Tuesday sales at U.S. retailers climbed at their fastest pace in three-and-half years last month, as government-sponsored auto incentives lifted demand for motor vehicles. Figures also showed strong sales outside the auto sector.

"The consumer environment has been slightly more favourably oriented in recent months. In particular, equity prices have rebounded, whilst various housing market indicators have improved again," Jean-Marc Lucas, economist at BNP Paribas, in Paris, wrote in a note.

Banking stocks paced the gains, with HSBC up 1.6 percent, Societe Generale up 1 percent and Banco Santander up 1 percent.

Resource-related stocks also gained ground, climbing along with metal and crude oil prices. ArcelorMittal gained 2.7 percent, Rio Tinto rose 1.5 percent and Repsol added 1.5 percent.

Stocks also got a boost from the U.S. Federal Reserve Chairman Ben Bernanke, who said the U.S. economic recession was probably over but the recovery would be slow and take time to create new jobs.

"From a technical perspective, the recession is very likely over," Bernanke said at a Brookings Institution conference, but he cautioned it may not feel like it's over.

On the downside, pharma stocks lost ground, with GlaxoSmithKline down 1.2 percent, Sanofi-Aventis down 0.4 percent and AstraZeneca down 0.2 percent. (Reporting by Blaise Robinson)

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