(Updates with full report)
PARIS (Thomson Financial) - Share prices closed at a six and a half year high as strong data on the US economy added positive sentiment to a market already buoyed by talk of consolidation in the energy sector and excitement over Renault's upcoming product launches.
The CAC-40 index finished up 64.15 points or 1.05 pct at 6,168.15, on volume of 6.6 bln eur.
Among CAC-40 stocks, 32 closed higher and 7 closed lower.
On the Matif, June CAC-40 futures were trading up 53.0 or 0.87 pct at 6,143.0.
On the broader indices, the SBF-80 index closed up 29.09 or 0.39 pct at 7,509.96, while the SBF-120 ended up 42.47 or 0.95 ct at 4,507.10.
The euro was quoted at 1.3437 usd versus 1.3457 late yesterday.
The US economy gave further grounds for optimism over the afternoon. May's job creation report came out stronger than expected, while the Commerce Department gave a lower reading on inflation, fuelling hopes of a cut in US interest rates.
At the same time, the Institute for Supply Management's survey of its members also indicated a strengthening in the US manufacturing sector for May.
In France, Renault led blue-chip gains, closing at an all-time high of 113.79, up 7.54 eur or 7.10 pct, as the group gave reassuring comments at an investor meeting and confirmed the unveiling of the new version Laguna next Monday.
The launch of the new Laguna, scheduled for this autumn, is part of the group's Commitment 2009 product revamp, which the company hopes will transform sales figures in the second half of this year.
One analyst said the news is nothing new, but it confirms Renault is on track with its plan.
'Renault has had no new own-brand models since October 2005, and now we've got the new Twingo coming out in June, and another four or five new models scheduled for the end of the year, plus 11 for next year,' he said.
The group was also boosted by news that management met 10 major shareholders today, and reiterated the encouraging message given at the publication of 2006's full year results in February.
'Renault apparently gave a very reassuring message on Nissan at the meeting, and on its ability to meet its operating margin target of 3 pct in 2007,' the analyst said.
Rival car maker Peugeot also benefited from the enthusiasm about Renault, closing up 1.39 or 2.36 pct at 60.28.
Figures from industry association CCFA today showed Peugeot new French car registrations rising 4.5 pct in May, beating Renault's performance which showed a 9.6 pct decline.
The other major climber on the CAC-40 was Electricite de France (EDF), which ended up 2.45 eur or 3.55 pct at 71.38, extending its gains from yesterday, when it was lifted by speculation of consolidation among utilities and an upbeat note from ABN Amro.
CEO Pierre Gadonneix fuelled enthusiasm over the energy sector in an interview with Le Parisien published today, saying that the opening of consumer energy markets to competition on July 1 may lead to joint projects with Gaz de France.
A spokesman at GDF said it 'shares the opinion' of Gadonneix about possible cooperation.
Shares in GDF closed up 0.13 eur or 0.35 pct at 37.45.
Arcelor Mittal ended the day up 1.54 eur or 3.45 pct at 46.17. CEO Lakshmi Mittal said at the launch of a new company logo that Arcelor Mittal aims to stay at the forefront of the consolidation and 'globalisation' taking place in the steel sector.
Veolia Environnement rose 0.86 eur or 1.38 pct to 63.06 as investors continued to react positively to yesterday's deal to buy 75 pct of TMT, the waste management unit of Italy's Termomeccanica Ecologia.
In a note this morning, CM-CIC analysts said the acquisition 'looks very promising' and represents Veolia's second good buy in this segment after Sulo in Germany.
Another significant climber was France Telecom, up 0.59 eur or 2.58 pct at 23.42, continuing a run of gains over the week which have followed news the group is examining offers for Orange Nederlans unit and may be interested in buying Deutsche Telekom's Spanish unit Ya.com.
Lafarge gained 2.89 eur or 2.25 pct to end the day at 131.51. Belgian daily L'Echo said entrepreneur Albert Frere could use a 1 bln eur capital raise to increase his 17.2 pct stake in the French construction group, while also raising his newly-acquired 5 pct stake in Spanish utility Iberdrola SA.
Outside the CAC-40, property firm Imerys soared 3.45 eur or 4.66 pct to 77.55 after a bullish note from UBS in which the broker lifted its recommendation to 'buy' from 'neutral', saying the company is a major beneficiary from the new French government's plans to offer tax relief on interest payments on home loans.
On the downside, Suez shed 0.29 eur or 0.68 pct to close at 42.46, giving up yesterday's gains that were fuelled by the entry of Albert Frere -- who is also Suez's largest shareholder -- into Iberdrola.
Vallourec also fell on profit-taking, ending the day down 2.96 eur or 1.24 pct at 234.89 after gaining 5.96 pct yesterday on press speculation of a bid by Russia's Gazprom. tfn.paris@thomson.com vb/gp/vb/wj COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
© 2007 AFX News