European shares closed higher on Tuesday, snapping a two-day losing streak, boosted by the commodity sector tracking firmer crude and metal prices, Reuters reported. The FTSEurofirst 300 index of top European shares provisionally closed up 0.6 percent at 1,005.16 points. The European index has rallied nearly 56 percent since hitting a low in March and is up around 18 percent this quarter, on track to post its best quarterly rise in almost a decade. "Fairly positive tone to the day. I just think it is a general notion that the recession is over and the economy is only going to improve from here," said Peter Dixon, economist at Commerzbank. "But, there is a growing sense we are getting a bit ahead of ourselves. We have had a pause in recent days ... and I expect the trend over the next few days is going to be flat," Dixon said. Energy stocks added the most points to the index as oil rose above $71 a barrel, recovering from a sharp fall the previous day. BP, Royal Dutch Shell and Total were 0.9 to 1.1 percent higher. Miners gained tracking metal prices higher, with copper and nickel up 1.7 and 2.8 percent, respectively. Eurasian Natural Resources Corporation, Rio Tinto and Xstrata rose between 1.6 to 5 percent. Drugmakers were also in demand. Roche gained 1.4 percent after Phase II data showed that Avastin, which has already been shown to help patients with brain cancer stay alive longer without their condition worsening, may also improve their daily lives.
