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![Markets are buoyant over rate cut hopes [EPA]](http://mwcnews.net/images/stories/Europe/a/1/2/3/shares.jpg "Markets are buoyant over rate cut hopes [EPA]") | | Markets are buoyant over rate cut hopes [EPA] |
European shares have closed sharply higher as commodities stocks jumped, tracking a surge in crude and metals prices, and banks rose on hopes the financial sector jitters may ease.
Expectations that the European Central Bank and the Bank of England might cut interest rates this week also lifted sentiment on Tuesday. The FTSEurofirst 300 index of top European shares provisionally closed 4.3 per cent higher at 973.39 points, registering a sixth straight day of gains. But the benchmark index is still down 35.4 per cent this year. Commodities shares led the advance, as crude oil prices surged 7.5 per cent after industry sources said Saudi Arabia had already made substantial cuts in crude supplies, while copper jumped 8 per cent and aluminium gained 3 per cent. BP, Royal Dutch Shell, gas producer BG Group and Tullow Oil added between 2.5 and 9 per cent. Banking shares also moved higher. UniCredit jumped 19.2 per cent, Societe General advanced 11.2 per cent, BNP Paribas added 5.6 per cent, HBOS surged 10.1 per cent and Barclays was up 8.4 per cent. Across Europe, Britain's FTSE 100 rose 4.4 per cent, Germany's DAX gained 4.9 per cent and France's CAC rose 4.6 per cent.
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Tags: European shares
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