LONDON, Aug 3 (Reuters) - European shares closed at their highest level in nine months on Monday as better-than-expected July U.S. manufacturing data boosted markets.
The pan-European FTSEurofirst 300 index of top shares provisionally closed 1.4 percent higher at 942.02 points after touching 947.07, the highest level since early November.
The Institute for Supply Management said its index of national factory activity rose to 48.9 in July from 44.8 in June. The median forecast of 72 economists surveyed by Reuters was for a reading of 46.2.
'The ISM data was certainly higher than the consensus numbers and was at the top end of the range. It is a good number, actually the significance of the 50 level being the cut off between expansion and contraction is over played,' said Jim Wood-Smith, head of research at Williams de Broe.
'Numbers in the high 40s are normally consistent with GDP growth. It is confirmation, that at least for the time being, we have seen the worst of the recession,' he said.
Banking stocks added the most points to the index. HSBC gained nearly 5 percent after it reported a pretax profit above analysts forecasts.
Commodity stocks gained as crude rose 2.9 percent and copper rose 4.4 percent.
Across Europe, Britain's FTSE 100 index closed at 4,682.46 points, its highest closing level since early October 2008. Earlier in the session, it hit a fresh intraday peak above the 4,700 , its highest level since the collapse of Lehman Brothers in October 2008.
Germany's DAX was 1.8 percent higher and France's CAC 40 was up 1.5 percent.
(Additional reporting by Jon Hopkins) Keywords: MARKETS EUROPE STOCKS/CLOSE (joanne.frearson@thomsonreuters.com; +44 207 542 2773, Reuters Messaging:joanne.frearson.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The pan-European FTSEurofirst 300 index of top shares provisionally closed 1.4 percent higher at 942.02 points after touching 947.07, the highest level since early November.
The Institute for Supply Management said its index of national factory activity rose to 48.9 in July from 44.8 in June. The median forecast of 72 economists surveyed by Reuters was for a reading of 46.2.
'The ISM data was certainly higher than the consensus numbers and was at the top end of the range. It is a good number, actually the significance of the 50 level being the cut off between expansion and contraction is over played,' said Jim Wood-Smith, head of research at Williams de Broe.
'Numbers in the high 40s are normally consistent with GDP growth. It is confirmation, that at least for the time being, we have seen the worst of the recession,' he said.
Banking stocks added the most points to the index. HSBC gained nearly 5 percent after it reported a pretax profit above analysts forecasts.
Commodity stocks gained as crude rose 2.9 percent and copper rose 4.4 percent.
Across Europe, Britain's FTSE 100 index closed at 4,682.46 points, its highest closing level since early October 2008. Earlier in the session, it hit a fresh intraday peak above the 4,700 , its highest level since the collapse of Lehman Brothers in October 2008.
Germany's DAX was 1.8 percent higher and France's CAC 40 was up 1.5 percent.
(Additional reporting by Jon Hopkins) Keywords: MARKETS EUROPE STOCKS/CLOSE (joanne.frearson@thomsonreuters.com; +44 207 542 2773, Reuters Messaging:joanne.frearson.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.