European shares closed at their highest level in more than six months on Tuesday as cheaper oil prices lifted fuel-hungry airlines, overshadowing uncertainty over the outcome of the U.S. presidential election. Investors remained reluctant to open new positions, wary that the close race between President George Bush and Democratic rival Senator John Kerry could lead to another contested result. "The worst possible outcome? No one wins," said economist Richard Batley at fund firm Schroders. "Uncertainty regarding the outcome of the election may not necessarily end on Nov. 3 ... and that would not benefit any risk-asset valuations." The FTSE Eurofirst 300 index ended 0.91 percent stronger at 1,016.13 points -- its highest close since April 24. The narrower DJ Euro Stoxx 50 index was up 0.75 percent at 2,855.16 points. A fresh retreat in U.S. oil prices to below $50 a barrel helped relieve concern over pressure on corporate earnings at firms like airlines, sending shares in Air France-KLM, British Airways and Iberia between 1.3 and 3.7 percent higher. Ryanair outperformed sector peers, surging 15.6 percent after profits at the no-frills air carrier came in well above expectations and the group surprised investors with an upbeat take on the full year. --More 0013 Local Time 2113 GMT
