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European shares close higher on stimulus hopes

Published 10/06/2010, 11:38 AM
Updated 10/06/2010, 11:40 AM
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LONDON, Oct 6 (Reuters) - European shares rose on Wednesday, with mining companies among the top gainers, as expectations grew that central banks would embark on further stimulus measures to support global economic growth.

The pan-European FTSEurofirst 300 index of top shares provisionally closed up 0.4 percent at 1,069.73 points, after ending higher in the previous session.

Mining firms rose 2.1 percent, boosted by gains in three-months copper and a fresh record high for gold after talk of extra stimulus from the U.S. Federal Reserve and other central banks put pressure on the dollar.

"The expectation that the Fed might announce more quantitative easing at its next meeting is mounting and that is helping equity markets in the short term," said Tammo Greetfeld, equity market strategist at UniCredit in Munich.

However, some concerns over the fragile U.S. labour market lingered as the ADP Employer Services report showed U.S. private employers unexpectedly cut 39,000 jobs in September. The data is seen as a forerunner to the U.S. government's key non-farm payrolls report, due on Friday.

On the downside, and the biggest blue-chip mover, was Autonomy Corp, which fell over 16 percent after it cut its full-year revenue guidance on the back of weak demand. (Reporting by Harpreet Bhal; editing by Simon Jessop)

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