LONDON, Sept 13 (Reuters) - European shares hit their highest close since April on Monday, as banks surged on relief that new capital rules were not more demanding, and miners rose with metals prices as Chinese data prompted optimism.
The FTSEurofirst 300 index of top European shares rose 0.7 percent to end provisionally at 1,088.20 points, the highest close in more than four months.
New capital requirements, known as Basel III, will demand banks hold top-quality capital totalling 7 percent, against the present requirement of 2 percent, of their risk-bearing assets but a long lead-in time eased fears that lenders will have to rush to raise capital.
Banks to gain included Credit Agricole, Societe Generale and UniCredit, up between 2.9 and 5.9 percent. Apart from the banks, "good numbers out of China, and M&A kicking off," were driving the market higher, said Andy Lynch, fund manager at Schroders. "There are a lot of good reasons out there." (Reporting by Brian Gorman)