European shares finished at their highest in six week – up 2.68 percent – as Australia’s interest rate rise made investors more confident that the global economic recovery is on track and that other central banks may follow suit.
A weaker US dollar lifted metal and oil prices which in turn had a positive effect on mining and energy companies. The region’s banks benefited from an upgrade by analysts at Bank of American Merrill Lynch. They were particularly keen on Credit Agricole which rallied 6.5 percent. Gold surged to a record high above 1,040 dollars an ounce thanks to a combination of factors – the dollar’s decline, buying momentum for technical reasons and worries about potential inflation.