* FTSEurofirst 300 index rises 0.9 percent
* Miners boosted by tight supply, demand expectations
* Sainsbury jumps on renewed Qatari bid talk
* U.S. tax cuts boosts recovery hopes
By Joanne Frearson
LONDON, Dec 7 (Reuters) - European shares hit a four-week
closing high on Tuesday, boosted by economic recovery hopes
after the United States extended Bush-era tax cuts, while miners
gained on rising demand expectations.
The pan-European FTSEurofirst 300 <> index of top
shares closed 0.9 percent higher at 1,115.66 points, having
earlier hit its highest intraday levels since late September
2008.
"The Obama tax cuts have diminished some of the uncertainty
for the markets, as they were more than expected," Koen De Leus,
strategist at KBC Securities said.
Investor sentiment got a lift after President Barack Obama
announced late on Monday a compromise deal to renew tax cuts not
just for the middle class, but also for wealthier Americans, a
move that is expected to increase consumer spending and boost
the economy. []
However, De Leus said it was a relief rally. Uncertainty
about the euro zone debt crisis could "destroy all the profits
which have been made in the past week", he added.
Since the Irish were bailed out last month, investors have
grown nervous that the debt problems could spread. So far,
Germany and other fellow euro zone states have resisted calls
from the International Monetary Fund to do more to address the
currency bloc's debt crisis. []
Miners featured among the top performers, extending the
previous session gains as copper <MCU3=LX> hit a record high on
supply worries and prospects for rising demand.
Antofagasta <ANTO.L>, ENRC <ENRC.L> and Xstrata <XTA.L>
gained 1.6 to 4.9 percent.
SAINSBURY JUMPS
Retailers were also high movers. British grocer J Sainsbury
<SBRY.L> jumped 4.3 percent after traders cited renewed talk of
bid interest from top shareholder Qatar Holding.
"Hearing talk of Qataris bidding 450 pence (per share) for
Sainsbury," said one trader.
Construction stocks were in demand. Germany's largest
builder Hochtief <HOTG.DE> rose 3.4 percent, extending its
previous session gains, as analysts remained positive on its
rights issue announcement and news that Qatar was buying a
stake.
The world's biggest brickmaker Wienerberger <WBSV.VI> rose
5.2 percent after two banks upgraded their price targets on the
stock.
Wolseley <WOS.L>, the world's largest plumbers and builders
merchant, was 2.7 percent higher after a forecast-beating
first-quarter trading update. []
Spanish wind energy firm Iberdrola Renovables <IBR.MC>
gained 4 percent after UBS upgraded its stance to "buy" from
"neutral" on valuation grounds.
Across Europe, the FTSE 100 <> index and Germany's DAX
<> both rose 0.7 percent, while France's CAC 40 <>
was up 1.6 percent higher.
(Reporting by Joanne Frearson; Editing by Will Waterman)
