* FTSEurofirst 300 closes 0.6 pct higher
* Utilities up on freezing temperatures and sector rotation
* Miners gain on strong metals prices
* Airlines fall as hundreds of flights cancelled
By Brian Gorman
LONDON, Dec 20 (Reuters) - European stocks hit a 27-month
closing high on Monday, with utilities gaining as freezing
temperatures boosted demand for energy and miners rising on
buoyant metals prices.
But trading was seasonally quiet ahead of the Christmas
holidays.
The FTSEurofirst 300 <> index of top European shares
rose 0.6 percent to 1,133.43 points, the highest close since
September 2008, the month of the collapse of Wall Street firm
Lehman Brothers. It also hit a 27-month intraday high.
Utilities gained, as sub-zero temperatures boosted energy
demand. The sector, one of the weakest performers in 2010, was
also catching up with recent gains for the wider market.
GDF Suez <GSZ.PA>, Iberdrola <IBE.MC>, National Grid <NG.L>
and Endesa <ELE.MC> rose between 2 and 3.5 percent.
"The markets may be saying euro zone debts are a sovereign
issue now, not a systemic issue," said Richard Batty, strategist
at Standard Life Investments in Edinburgh, citing the safety net
that European leaders said would be set up in 2013.
The euro fell broadly on Monday, hitting a record low
against the Swiss franc, with more losses likely as investors
fretted over euro zone debt. []
But Batty said the weakness of the euro would mean higher
profits for some euro zone exporters
The weather hurt airlines, which cancelled hundreds of
flights. British Airways <BAY.L>, easyJet <EZJ.L>, Ryanair
<RYA.I>, Air Berlin <AB1.DE> and Air France <AIRF.PA> fell
between 1 and 1.9 percent.
Most miners gained as metal prices rose, with copper up near
record levels. Antofagasta <ANTO.L>, Eurasian Natural Resources
Corp.<ENRC.L> and Lonmin <LMI.L> rose between 0.7 and 1.1
percent.
The European benchmark <> is up more than 75 percent
from its record low of March 2009, with several major economies
having emerged from recession, helped by stimulus from
governments and central banks worldwide.
Britain's FTSE 100 <>, Germany's DAX <> and
France's CAC40 <> rose between 0.3 and 0.5 percent.
The euro zone's blue-chip Euro STOXX 50 <> index
rose 0.6 percent to 2,839.22, above the 38.2 percent Fibonacci
retracement of its drop to a 2009 low from a 2007 high.
"December's rally is almost done and the market is somewhat
overbought in the short term, but it does not mean the bullish
trend is over," said Vincent Ganne, technical analyst at IG
Markets, Paris.
POPOLARE UPGRADE
Most banks were higher and Italy's Banco Popolare <BAPO.MI>
rose 5.6 percent, helped by a Goldman Sachs upgrade to "neutral"
from "sell".
But Greek stocks bucked the trend, with Alpha Bank <ACBr.AT>
down 5.9 percent and National Bank <NBGr.AT> off 4.7 percent,
hit by fears of a credit rating downgrade for the country's
debt, traders said.
"The market is climbing nicely and investment themes such as
exposure to emerging markets are intact going into the next
year," said David Thebault, head of quantitative sales trading
at Global Equities, in Paris.
(Additional reporting by Blaise Robinson; Editing by David
Hulmes)
