Drugmakers and miners among top gainers

Eurostoxx 50: 2,331.12 (+7.45) Frankfurt DAX: 5,948.94 (-45.96) Paris CAC: 3,254.34 (+23.44):EUROPEAN EQUITIES closed at their highest in almost two weeks yesterday, as investors switched their focus to company earnings and cheap equity valuations after disappointment at a Franco-German summit had led to losses earlier in the session.

Strong gains on Wall Street after Target unveiled higher quarterly profit and Staples raised its profit outlook, helped to improve sentiment, with investors returning to grab beaten-down stocks.

The European market was choppy, amplified by low volume as many traders and investors were on summer holidays.

Volume on the FTSEurofirst 300 index index of top European shares was just 78 per cent of its 90-day daily average. On the FTSE 100 index it was just 76 per cent.

The FTSEurofirst 300 index ended 0.3 per cent firmer at 971.87, its highest close since August 5th.

It had earlier fallen to a low of 955.94 as a summit between French President Nicolas Sarkozy and German Chancellor Angela Merkel failed to calm investor jitters over the euro zonedebt crisis.

Drugmakers featured among the top gainers after sharp declines in the previous two weeks.

The sector index , still down more than 7 per cent this month, was up 1.1 per cent.

Sanofi rose 2.8 per cent after Deutsche Bank ranked the French drugmaker among 25 European “quality names” that provide good value for investors following a sell-off.

Miners were also in demand, with the sector index rising 0.9 per cent, as key base metals prices rose on buying interest from Asia and on a weaker dollar.

Banks fell 1.1 per cent to feature among the heaviest fallers.

Analysts said the UK, with its huge financial services sector, would be worst hit and the most unlikely to back the proposal. London-listed interdealer broker ICAP fell 3.7 percent on concerns the tax would hit its earnings. Spread-betting firm IG Group also shed 3.7 per cent.

Among individual movers, Carlsberg which saw volume of 800 per cent of its average 90-day figure, lost 17.5 per cent after the Danish brewer posted a drop in second-quarter profit and more than halved its full-year growth prospects. – (Reuters)