European shares end up, boosted by oils, Vodafone

European shares rallied yesterday as high crude prices boosted oil majors, while mobile phone giant Vodafone firmed after reporting a strong quarterly rise in customer numbers.

Danone was the biggest negative influence on European indexes, tumbling 7.5 per cent after US soft drinks heavyweight PepsiCo quashed speculation it was planning a takeover bid for the French food group.

The FTSEurofirst 300 index of pan-European blue chips closed 0.5 per cent higher at 1,170.6 points on thin turnover of around two billion shares.

The narrower DJ Euro Stoxx 50 index rose 0.2 per cent to 3,298.3 points.

Company results drove much of the action as the region's busiest week of the second-quarter earnings season kicked off.

"Generally, companies seem to have managed expectations quite well for this quarter," said Stuart Fraser, an investment director at Standard Life Investments.

Merger and acquisition activities were providing further support, with companies accessing cheap debt to fund bids for undervalued companies, he added.

Having jumped three per cent on Friday, US crude eased yesterday but remained above $58 a barrel amid supply concerns caused by the strongest start to the annual Atlantic hurricane season on record.