Europe stocks end higher as commodities gain

LONDON (Reuters) - European shares ended higher on Wednesday in a choppy session, extending a winning streak to five days, with commodity stocks the major gainers as the price of crude oil and metals rose.

The pan-European FTSEurofirst 300 <.FTEU3> index of top shares was up 0.3 percent at 874.49 points at provisional close, having been up as much as 877.88 points and down as low as 867.08 points.

The index, which slumped 45 percent in 2008, rose to its highest close in more than four months on Tuesday and is about 35 percent higher than a lifetime low on March 9.

"Cyclicals are leading the market today, commodity prices are quite firm. There is no particular strong news out there and investors are asking what are the themes -- which is the oil price ticking up today," said Philip Lawlor, strategist at Nomura.

"Investors still want to build positions in cyclicals as they have been extremely oversold," said Lawlor.

Energy stocks were higher, with oil firming above $61 a barrel to touch a new six-month high as bullish inventory data and a spate of refinery accidents in the United States smoothed over investor resistance.

BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell <RDSa.L> and Total <TOTF.PA> were up 0.6-1.3 percent.

Miners rose as metal prices advanced, with copper gaining 1.6 percent.

Lonmin <LMI.L> soared 7.9 percent, while Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>, Eurasian Natural Resources Corporation <ENRC.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L> were 0.7-4 percent higher.

(Reporting by Joanne Frearson)

Article Published: 20/05/2009