May 18, 2006	Thursday	Rabi-us-Sani 19, 1427

LONDON, May 17: European shares crept upwards on Wednesday, following recent stock market turbulence, as a rebounding mining sector in London helped offset an overnight dip on Wall Street, dealers said.

Europe’s main indices had posted slight gains on Tuesday after slumping on Monday and last Friday, as investors fretted over a volatile dollar and the possibility of higher inflation in the United States.

On Wednesday, London’s FTSE 100 index of top shares added 0.11 per cent to 5,852.40 points in early deals, Frankfurt’s DAX 30 gained 0.32 per cent to 5,870.17 points. In Paris the CAC 40 increased by 0.29 per cent to 5,096.36.

The DJ Euro Stoxx 50 index of leading eurozone shares won 0.28 per cent to 3,740.75 points.

The euro stood at 1.2907 dollars.

The FTSE 100 had shed as much as 2.65 per cent in Monday trade to 5,755.40 points, the lowest intra-day level since February 9, with mining stocks amongst the main casualties.

Global markets are concerned that high commodity prices will translate into higher inflation and prompt the US Federal Reserve to raise the cost of American borrowing again in June.

Wall Street shares had lost ground Tuesday as investors remained nervous about the outlook for interest rates after the latest inflation figures.

Japanese share prices snapped a six-day losing streak on Wednesday as bargain hunters finally emerged to scoop up stocks from their eight-week lows, dealers said.

In London on Wednesday, the mining sector was once again in focus.

The FTSE 100 edged higher again... with miners again leading the way, following several days of sales in mining stocks after a drop in metals prices, analysts at the Sucden brokerage said.

The share price of copper miner Kazakhmys leapt 2.65 per cent to 1,218.5 pence, while Antofagasta jumped 3.41 per cent to 2,304 pence.

Shares in Xstrata bounced 2.14 per cent higher to 2,146 pence after it confirmed an all-cash offer for Canadian nickel producer Falconbridge.

The Anglo-Swiss copper miner, which already owns 20 per cent of Falconbridge, said the combination of the two companies will create the world’s fifth-largest diversified mining company.

In Paris trading, Vivendi saw its shares jump 4.78 per cent to 29.13 euros after the French media and telecom group posted a solid set of first quarter numbers and lifted its guidance.

Shares in Credit Agricole slid 0.82 per cent lower to 32.83 euros, despite France’s biggest bank reporting a better-than-expected 53-per cent jump in first-quarter net profit to 1.385 billion euros.

On Wall Street on Tuesday, the Dow Jones Industrial Average had dipped 0.08 per cent to 11,419.89 points after see-sawing around the flatline throughout the session.—AFP