European shares hit a 2-1/2 month high on Tuesday as upbeat economic data reinforced expectations the euro zone is finally crawling out of recession, Reuters reported. Rises in the ZEW German sentiment index and in euro zone industrial production lifted investor sentiment and set a positive backdrop for Wednesday's release of second-quarter euro zone GDP data, expected to show the currency bloc has emerged from recession. The data helped the FTSEurofirst 300 gain 0.6 percent to 1,236.99 points, within sight of its 2013 peak at 1,258.09. The euro zone's blue-chip Euro STOXX 50 ended up 0.5 percent at 2,841.61 points. A BofA-ML survey showed investors increased their allocation to euro zone stocks to its highest in 5-1/2 years, but positioning still lagged optimism about growth in the region, which hit a nine-year high. The STOXX Europe 600 has risen around 12 percent since June, lifted by improving economic data and a European Central Bank pledge to keep monetary policy accommodative. The index is trading at 12.7 times its expected earnings for the next 12 months, above its 10-year average and leading some short-term investors to take a cautious view. Some forecast-beating corporate reports, especially from domestically focused European companies such as utilities , have also supported shares in the past month. All utilities in the STOXX Europe 600 index have met or beaten analyst estimates so far this earnings season, making them the best-performing sector. In comparison, 45 percent of all companies in the index have missed consensus forecasts. German utility E.ON rose 2.2 percent on Tuesday after reporting slightly better than forecast profits for the first half. -- SPA 19:57 LOCAL TIME 16:57 GMT تغريد
