European shares rose on Thursday after confidence was boosted by Germany's Bundesbank raising its forecast for the country's economic growth this year, with banks and miners among the biggest gainers.
By 1059 GMT, the FTSEurofirst 300 index of leading European shares was up 0.6% at 1,058.80 points, rebounding from falls earlier in the day in a choppy session.
The Euro STOXX 50, the euro zone's blue chip index, was up 0.7% at 2,747.18 points, climbing above its 50% retracement, at 2,737.62 points, of its fall to a May low from an April high.
Volumes, however, were thin due to the holiday period. Volumes on the index were at just 23% of its average 90-day volume by midday.
Sentiment was boosted after Germany's Bundesbank said the economy is set to grow by around 3% this year, against a previous forecast of almost 2%.
Banks were among the biggest gainers, with Deutsche Bank, Barclays and Societe Generale up 0.2 to 0.7%.
"The positive news from the Bundesbank, which raised their growth forecasts for 2010, is giving the markets a boost on a day where volumes are quite low," a London-based trader said.
Among other gainers, British food retailers rose after data showed retail sales volumes rose faster than forecast last month..
Tesco, Sainsbury and Wm Morrison were up 0.8 to 2.3%.
Investor confidence was also lifted by data showing UK public sector borrowing fell sharply.
NOKIA GAINS
Among individual movers, Nokia rose 3.3% after a Finnish newspaper reported that the company could be cheap enough to become an acquisition target, and on expectations of an improving offering of smartphones.
Mining firms were also higher, boosted by rising metals prices. Anglo American, Kazakhmys and Rio Tinto were up 0.3 to 0.5%.
BHP Billiton rose 0.4%. The miner is focusing on getting regulatory approval for its $39 bλn hostile bid for Potash Corp before trying in earnest to win over the Canadian company's shareholders.
On the downside, Holcim tumbled 4.2% after the world's second biggest cement maker's first-half earnings missed forecasts and it said government austerity programmes would limit infrastructure spending.
Across Europe, Britain's FTSE 100 index, Germany's DAX index and France's CAC 40 were up 0.1 to 0.7%.
