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European shares set new two-month high

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Reuters LONDON
Last Updated : Aug 05 2013 | 1:15 PM IST

LONDON (Reuters) - European shares hit a new two-month high on Monday, mirroring gains in the United States where the S&P 500 hit a record high after mixed U.S. jobs data raised expectations a withdrawal of stimulus would be delayed.

At 0718 GMT, the FTSEurofirst 300 index of top European shares was up 0.4 percent higher at 1,229.16 points.

"The market is getting some support as the (U.S. stimulus) tapering time-table is likely to be changed," Mike van Dulken, head of research at Accendo Markets, said. "The market still has a bullish bias and we could revisit the May highs."

The index is around 2.4 percent off its May high of 1,258.09 points.

On the downside, Danone fell 1.4 percent after New Zealand's Fonterra, the world's biggest dairy exporter, said it had found bacteria in some products that could cause botulism.

In response, China has halted the import of some dairy products, while Danone said it has recalled products that may have contained the contaminated whey.

(Reporting by Atul Prakash; editing by Simon Jessop)

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First Published: Aug 05 2013 | 1:02 PM IST

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