Pan-European share indexes jumped more than 1 percent to three-year highs on Wednesday, boosted by a weaker euro and U.S. data that soothed fears of aggressive interest rate rises there. BP, up 2 percent, Total, up 1.4 percent, and Royal Dutch, up 2.4 percent, were the biggest positive influence on indexes as crude prices hit a three-week high and the dollar continued to firm. The FTSEurofirst 300 index of pan-European blue chips ended 1.4 percent higher at 1,120.6 points, its highest since June 2002, according to Reuters. Every sector in Europe posted gains, helped by Wall Street's solid performance after the U.S. Institute of Supply Management's manufacturing index showed a slowdown in factory activity in May, calming worries about inflation and interest rates. "What it does do is put a shot across the Fed's bows that maybe growth perceptions are slowing to such an extent that the Fed may have to pause in its rate-tightening plans," said David Brown, chief European economist at Bear Stearns. The Eurofirst 300 posted its biggest monthly gain since October 2003 in May, boosted by improved economic data and solid earnings in both the U.S. and Europe. Technical analysts at Merrill Lynch said the healthy rebound in global stock markets last month had eased the threat for further declines after the sell-off in March and April. --More 2124 Local Time 1824 GMT
