- LONDON: European shares rose on Monday for the ninth session, hitting a five-and-a half week high after China allowed more flexibility in the yuan exchange rate boosting confidence in the global economy.
Mining stocks featured among the top performers as metal prices jumped on hopes a more flexible Chinese yuan would increased purchasing power and boost demand.
Anglo American, Antofagasta, BHP Billiton and Xstrata rose 3.9 to 4.2 percent.
By 0706 GMT, the pan-European FTSEurofirst 300 index of top shares was up 1.5 percent at 1,060.41 points. "It is a relief the Chinese has made some move (with the yuan)," said Justin Urquhart Stewart, director at Seven Investment Management. "It is positive to the market as it had been a issue the US had been flagging up in regard to global trade."
However, BP slipped 3.7 percent. The company said on Monday the cost of its response to the Gulf of Mexico oil spill had hit $2 billion and that it had paid out $105 million in damages to those affected by the disaster.