LONDON, Jan 4 (Reuters) - European shares hit their highest closing level in nearly a week on Tuesday, with miners and oil firms contributing to the bulk of gains as commodity prices were boosted by strong manufacturing data from around the world.
The pan-European FTSEurofirst 300 index provisionally closed 0.8 percent higher at 1,140.77 points, with Britain's FTSE 100, which has a large proportion of commodity shares, rising 1.7 percent on its first trading day of the year.
Commodity stocks were buoyed by expectations for upbeat demand for raw materials following strong manufacturing data from China, the United States and Europe, with the STOXX Europe 600 oil and gas index up 2.3 percent as crude prices hovered near 27-month highs.
"It has been a great start to the year, kicked off by commodity stocks, but I think the markets could start to slow a bit. European debt problems are going to be the major story that will put us in a risk-off trade," said James Hughes, market analyst at CMC Markets.
BP climbed more than 5 percent and earlier hit a six-month high after the Daily Mail newspaper reported rival Royal Dutch Shell considered a takeover bid, and as investors were reassured by comments that suggested damages from its oil spill could be half the expected level.
Shell shares rose 1.1 percent.
(Reporting by Harpreet Bhal; editing by David Hulmes)