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Europe shares gain most in three months; miners up

Published 09/01/2010, 11:40 AM
Updated 09/01/2010, 11:44 AM

LONDON, Sept 1 (Reuters) - European shares rose at their fastest pace in three months on Wednesday, on strong manufacturing data from the United States and China, the two biggest economies in the world.

The FTSEurofirst 300 index of leading European shares rose 2.7 percent to a provisional close of 1,054.10 points, its biggest one-day percentage rise since late May. The index lost 1.7 percent last month.

"The main reason is the data from China, and that was needed because China is one of the few pockets of strength left," said Heino Ruland, strategist at Ruland Research in Frankfurt.

"Equities are not expensive. So any sign of a resumption of stronger growth, and people will look at purchasing equities as opposed to bonds."

Miners were the standout gainers. Kazakhmys, Rio Tinto and Xstrata rose between 5.8 and 6.8 percent. (Reporting by Brian Gorman)

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