LONDON Jan 29 European equities scaled fresh
two-year highs on Tuesday, boosted by miners, as optimism about
economic recovery gained momentum following encouraging U.S.
home price data and comments over growth in top metals consumer
A report earlier showed U.S. home prices rose in November,
adding further to evidence of a housing market recovery there.
China's top think tank, meanwhile, lifted its economic growth
forecast for 2013 to 8.4 percent from 8.2 percent, with faster
expansion seen in the first half of the year.
The FTSEurofirst 300 provisionally ended up 0.5
percent at 1,178.55, its highest close since Feb. 18, 2011,
taking the rally off its June lows to around 24 percent. Mining
stocks ended the day up 1.8 percent.
Fund managers said that while there was the possibility that
equities would level off after such hefty gains, they deemed a
significant near-term sell-off as unlikely.
"You will get to the point where that squeeze higher will
have absorbed all of the cash that was destined to go into
equities and it's at that point markets will be vulnerable - but
I don't think we're there yet," said Andrew Cole, a fund manager
at Baring Asset Management, which has 32.4 billion pounds ($50.9
billion) of assets under management.