Miners propel Europe stocks up

European shares closed higher yesterday, snapping a four-session losing streak as a rally in heavyweight mining stocks helped counterbalance a sharp drop in companies with disappointing earnings.

Office goods supplier Buhrmann sank as investors worried about growth in its key US market, while sugar and sweeteners maker Tate & Lyle dropped despite a healthy profit jump.

The pan-European FTSEurofirst 300 index closed unofficially up 0.4 per cent at 1,449.6, after steadily pulling back from five-years. The index it is still up more than 13 per cent so far this year.

Trading volumes were low in some major markets with public or market holidays for All Saint's day.

Across Europe, the FTSE gained 0.3 per cent, while Germany's DAX added 0.4 per cent and France's CAC 40 nudged 0.4 per cent higher.

Mining heavyweights BHP Billiton and Anglo American were among top gainers, rising more than two per cent as gold prices advanced and copper prices were steady. Xstrata added 3.9 per cent.

"Mining shares are in high demand due to continuing strong demand for metals. There's no weakness in sight," said Markus Steinbeis, head of European equities at German asset manager Pioneer Investments.

Oil producers peeled back some of their earlier gains as crude oil fell to around $58.20 a barrel after a US government inventory report showed supplies rose less than expected. BP rose 0.6 per cent and Total 0.5 per cent.

Buhrmann tumbled 6.8 per cent after the Dutch company reported a seven per cent gain in quarterly operating profit, but investors grumbled about a five per cent like-for-like growth rate in the US where it generates two-thirds of its sales.