European Markets Edge Higher

Reuters

European shares edged higher to hit a four-week high on Wednesday as growing optimism about a global economic recovery improved sentiment, while miners advanced on hopes demand for raw materials will improve.

At 0705 GMT, the FTSEurofirst 300 index of top European shares was up 0.1 percent at 1,145.09 points after touching 1,146.24, the highest since March 9.

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"Optimism continues to rule even though there are still quite a bit of clear and present dangers. Portugal needs to find some financing fast, but the good news is that the worries for Greece, Ireland and Portugal are not hurting Spain," said Philippe Gijsels, analyst at BNP Paribas Fortis Global Markets.

"The market will continue to be well supported as long as the U.S. Federal Reserve continues to put liquidity into the system. Only when the Fed stops printing, we will be able to see the real strength of the economy and markets. And then markets may be disappointed."

Miners were among the top gainers, with the STOXX Europe 600 Basic Materials index rising 0.6 percent and Vedanta gaining 2 percent.

(Reporting by Atul Prakash)