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European shares close firmer, buoyed by miners

Published 10/20/2010, 11:40 AM
Updated 10/20/2010, 11:44 AM

LONDON, Oct 20 (Reuters) - European shares ended higher on Wednesday, led by strength in mining stocks, although mixed company earnings and massive UK government spending cuts capped gains.

The FTSEurofirst 300 index of top European shares provisionally finished 0.3 percent higher at 1,086.29 points after hovering in a range of 1,079.42-1,087.72 points.

Miners were the top gainers and tracked firmer metals, which gained ground on a weaker dollar after a China rates hike led to a slump on Tuesday. Anglo American, BHP Billiton and Xstrata rose 2.6 to 3.4 percent.

Investors closely watched earnings results from major companies for signals on near-term market direction. Morgan Stanley reported a surprising third-quarter loss on weak volumes, while Boeing's quarterly profit beat market expectations.

"The earnings season going on, but I don't think earnings are necessarily going to be a net positive influence on equities in the current reporting period," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. (Reporting by Atul Prakash; editing by Simon Jessop)

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