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* FTSEurofirst 300 index rises 0.6 percent
* Miners up as gold hits record highs
* Porsche up on VW cash payment hopes By Joanne Frearson
LONDON, Nov 9 (Reuters) - European shares closed at their highest level in more than two years on Tuesday, boosted by fresh corporate earnings reports and improved hopes that the global economic recovery is sustainable.
The pan-European FTSEurofirst 300 <.FTEU3> index of top shares closed up 0.6 percent at 1,117.24 points, its highest close since September 2008.
"European markets are holding up following on from last week's positive news on U.S. quantitative easing and valuations are still at acceptable levels," Lothar Mentel, chief investment officer at Octopus Investments, said.
The STOXX Europe 600 <.STOXX> index prices the one-year forward forecast earnings of its constituency at about 10.7 times against a 10-year average of 13.43, Thomson Reuters Datastream showed.
Miners were among the top performers as gold
Gold miners Petropavlovsk
Although miners led the markets higher technical indicators suggested the market was in "overbought" territory, with the relative strength index for the index at 71. Seventy and above is considered "overbought".
"I expect a technical correction over the next few days. There are various warning lamps flashing, though it probably requires a trigger for it to happen, maybe a wobble from Portugal and Ireland could send the market lower."
Sovereign debt concerns have continued to weigh on several peripheral euro zone countries and the cost of protecting Portuguese government debt against default rose to a record intraday highs on Tuesday.
PORSCHE GAINS
Nevertheless carmakers were in demand with Porsche SE
Strong corporate earnings news also helped boost market sentiment.
Barclays
Luxury group Hermes
Adecco
Not all corporate results were deemed positive, with
Carlsberg
Across Europe, the FTSE 100 <.FTSE> index was 0.4 percent higher, Germany's DAX <.GDAXI> was up 0.6 percent and France's CAC 40 <.FCHI> was 0.8 percent higher. (Editing by Greg Mahlich)