European shares rebound at the open

European shares climbed higher early on Tuesday in weak volumes, rebounding after falls in the previous session as investors await the next policymaker catalyst to drag regional indexes out of their current ranges.

The FTSEurofirst 300 was up 3.69 points, or 0.3 per cent, at 1108.55, having closed 0.5 per cent lower on Monday, as a lack of fresh, firm news and low volumes has seen the market pause at the top of its August trading range.

"The gains registered by most global equity benchmarks through the central weeks of the (European) summer doldrums have been greeted with understandable scepticism given the still miserable levels of trading volumes," Ian Williams, equity strategist at Peel Hunt, said.

"ECB officials are likely to continue to reiterate the need for constructive action from governments, while reiterating the point that the details of any intervention have yet to be finalised," he said.

Britain's FTSE 100, France's CAC40 and Germany's DAX have rallied between 10 and 15 per cent in the last three months with most of the gains registered after the European Central Bank president Mario Draghi promised to do whatever it takes to save the euro.

Britain's top share index pushed higher in early deals, rallying after falls in the previous session, led by a recovery in heavyweight mining stocks as copper prices inched higher supported by a weaker US dollar.

Glencore was an early focus, adding 0.8 per cent as the commodities trader stuck to its guns on a $30 billion bid for miner Xstrata after it reported earnings for the first half of 2012 dragged down 26 per cent by weaker commodity prices.

Xstrata fell 0.7 per cent on diminished hopes for an increased offer.

Reuters

The story European shares rebound at the open first appeared on The Sydney Morning Herald.

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