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Banks, techs push European stocks higher at close

Published 07/15/2009, 12:35 PM
Updated 07/15/2009, 12:40 PM
UK100
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BARC
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BP
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CSGN
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PSHG_p
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ALUA
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SOGN
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TTEF
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SAN
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NOKIA
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XTA
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RIO
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AAL
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BHPB
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ANTO
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ASML
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(Corrects typo in headline)

* FTSEurofirst 300 index finishes up 2.8 percent

* Highest close in two weeks

* Banks gain after Goldman Sachs results

* Tech stocks rise after Intel results

By Joanne Frearson

LONDON, July 15 (Reuters) - European shares closed higher on Wednesday, boosted by better-than-expected results by Goldman Sachs and Intel, with banking stocks the biggest gainers.

The pan-European FTSEurofirst 300 index of top shares was 2.8 percent higher at 863.32 points, its best close in two weeks.

The benchmark index, which slumped 45 percent in 2008 due to the credit crisis, rose 1.2 percent in the previous session and has gained 33 percent since hitting a record low in early March.

"There seems to have been a consistent out turn of better-than-expected results with Goldman and Intel today in the U.S. There is a growing conviction that recovery is coming and we are leaving the worst behind," said Mike Lenhoff, strategist at Brewin Dolphin.

Banking stocks added the most points to the index as results from Goldman Sachs on Tuesday helped push banking stocks higher.

Barclays was up 4.4 percent. Several people familiar with the matter said it is considering the sale of its private equity business and will meet investment partners this week to discuss the issue.

HSBC, Banco Santander, Societe Generale and Credit Suisse gained 2.6-4.2 percent.

Energy stocks were higher as crude rose 2.7 percent. BG Group, BP, Royal Dutch Shell and Total up 2.1-3.3 percent.

Mining stocks rose as copper ticked up 4.4 percent. Global miner Rio Tinto jumped 4.2 percent after it posted a stronger-than-expected 8 percent rise in second-quarter output of iron ore. Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation and Xstrata rose 3-8.4 percent.

TECHNOLOGY STOCKS BOOSTED BY INTEL

Technology stocks gained after U.S. peer Intel's quarterly results and outlook blew past Wall Street forecasts on better-than-expected consumer demand for PCs. "Further helping fuel the feeling that the worst is over was semiconductor producer ASML's estimates that sales would improve in the next quarter," said Mic Mills, senior sales trader at ETX Capital.

ASML Holding was up 4.7 percent. The group said it expected third-quarter sales of around 450 million euros and a gross margin of about 30 percent.

Alcatel-Lucent soared 10.9 percent, given further impetus by Bank of America-Merrill Lynch upgrading it to "buy".

Ericsson, Nokia and Infineon Technology were 3.4-8.1 percent higher.

Porsche rebounded to gain 0.9 percent from earlier falls. Porsche said its chief executive, Wendelin Wiedeking was to remain CEO of the company after a German business weekly reported that he was to leave.

Looking at macroeconomic data, a strong reading on the New York State manufacturing survey helped raise investor sentiment.

The slumping factory sector in New York state nearly pulled out of contraction in July, posting the highest reading in more than a year as new orders surged, the New York Federal Reserve said.

Across Europe, the FTSE 100 index rose 2.6 percent, Germany's DAX was 3.1 percent higher and France's CAC 40 was up 2.9 percent.

(Editing by David Cowell)

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