Europe stocks hit 3-wk closing high on Chinese data

By Atul Prakash LONDON, Nov 11 (Reuters) - European shares hit a three-week closing high on Wednesday, boosted by financials and miners and a renewed appetite for risk following positive macro-economic data from China. Comments from Federal Reserve officials reinforcing the view that U.S. interest rates will remain near zero for some time also supported stocks, but pushed the dollar to a 15-month low before the currency recovered in a technical rebound. The FTSEurofirst 300 index of top European shares ended up 0.4 percent at 1,013.87 points, the highest close since Oct. 22. The index, which has gained in five of six sessions, is up 22 percent in 2009 and has surged 57 percent since hitting a record low in early March. Banks were among the top gainers, with France's biggest retail bank Credit Agricole rising 5.6 percent after the lender's third quarter net profit fell less than expected and the bank chose a new chief executive. Standard Chartered, HSBC, Lloyds, BNP Paribas, Societe Generale, Natixis and UBS rose 0.9 to 4.7 percent. "Positive macro-economic data from China helped the market today," said Tammo Greetfeld, equity strategist at UniCredit. "The recent macro data has alleviated some concerns and we are convinced that the equity market will get a tailwind from positive data in the coming months. We think that the cyclical high in equities is still to come," he added. Chinese factory output growth surged to a 19-month high in October, showing the world's third-largest economy has put the worst of the global financial crisis behind it. Insurers also gained. ING rose 6.6 percent after posting a third-quarter profit in line with pre-announced results and said it has received strong interest in its insurance business, which is up for sale. The VDAX-NEW volatility index fell to a two-week low. The lower the index, which is based on sell and buy options on Frankfurt's top-30 stocks, the higher is the risk appetite. Across Europe, Britain's FTSE 100 index, Germany's DAX and France's CAC 40 rose 0.7 to 1 percent. "Progress continues to be tougher going after the recent giddy gains, but investors remain keen to look beyond the negatives and keep their appetite for optimism - and risk - strong," said David Jones, chief market strategist at IG Index. COMMODS GAIN, SAINSBURY UP Commodity shares were in demand after spot gold hit record highs near $1,120 an ounce. Aluminium rose 0.3 percent, while zinc gained 0.7 percent. BHP Billiton, Anglo American, Antofagasta , Rio Tinto, Xstrata and Eurasian Natural Resources rose 1.3 to 2.7 percent. Energy shares gained as crude oil prices traded near $79 a barrel. Royal Dutch Shell, BG Group, Total and StatoilHydro added 0.6 to 1.5 percent. "There are signs of gradual economic revival coupled with low levels of inflation. It is just a favourable environment for risky assets and risk taking," said Jeremy Batstone-Carr, head of research at Charles Stanley. Among other big movers, E.ON, the world's largest utility, and power-station owner International Power rose 1.2 percent and 2.8 percent respectively after forecasting a tentative pickup in demand for power as economies start to recover from the global downturn. Rising customer numbers, growth in non-food ranges and cost control helped J Sainsbury to post first-half profit towards the top end of forecasts, though Britain's No.3 grocer signalled a tougher second half. Its shares rose 3.2 percent. The world's second largest cement maker Holcim was up 3.7 percent. It said stimulus programmes were set to return North America to growth in the second half of 2010 as it posted forecast-beating quarterly figures. 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