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Utilities push Europe shares to 4-wk closing high

Published 09/06/2010, 11:37 AM
Updated 09/06/2010, 11:40 AM

LONDON, Sept 6 (Reuters) - European shares edged higher on Monday, adding to a strong rally last week, with utilities rising after the German government extended nuclear power plants lifespans, but in low volumes with Wall Street closed.

The pan-European FTSEurofirst 300 index of top shares rose 0.1 percent to end the day provisionally at 1,065.21 points, the highest close since Aug. 9, after rising 3.6 percent last week.

"The markets might go slightly higher, but it's not a great week for economic data or corporate news," Jeremy Batstone-Carr, strategist at Charles Stanley, said.

"It's fair to say equity yields, compared with bond yields, are very attractive -- but yields and prices are where they are because investor sentiment has been on the back foot. The probability of a double dip in Europe is close to 50 percent."

Utilities featured among the top movers. German companies E.ON and RWE rose 2 and 2.1 percent respectively on hopes for billions of euros of extra profits from a decision to extend the lifespans of nuclear power plants in Europe's biggest economy. (Reporting by Brian Gorman)

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