Europe shares end higher

European stocks notched up a third successive day of gains yesterday, helped by commodity shares that rose on higher crude prices and a mining sector takeover, and investors betting on a US rate cut this week. The pan-European FTSEurofirst 300 index of top shares ended the day provisionally up 0.68 per cent at 1,587.60 points, taking its gains for the year to around seven per cent.

"It's safe to say that for the next 3-4 months equities will consolidate until we learn whether we are going to have a recession or a soft landing in the United States," said Andrew Bell, European strategist at Rensburg Sheppards Investment Management. "But we seem to be coming down on the bullish side of the available evidence as central banks reflate the economy."

Crude prices hit a record $93.20 a barrel, lifting index heavyweight oil stocks. BP rose 0.8 per cent, Shell rose 0.5 per cent and Total gained 1.1 per cent.

A $2.8-billion deal by miner Xstrata to buy Australian nickel producer Jubilee Mines, and positive brokerage notes, lifted miners. Kazakhmys rose 3.5 per cent and Anglo American gained 3.2 per cent.