European shares hit 11-month closing high

                                
 * FTSEurofirst 300 up 1 pct; highest close in 11 months
                                
 * Energy shares track crude oil; banks among top gainers
                                
 * Automakers advance on Renault chief executive's comment
                                
 By Atul Prakash
                                
 LONDON, Sept 9 (Reuters) - European share prices hit an
11-month closing high on Wednesday, with stronger crude prices
on the back of a falling dollar boosting energy stocks and
Commerzbank <CBKG.DE> leading the financial sector higher.
                                
 Automakers advanced after Renault's <RENA.PA> chief
executive, Carlos Ghosn, said "the financial crisis is clearly
behind us."
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
ended 1 percent higher at 987.85 points, the highest close since
October and a fourth consecutive session of gains.
                                
 It is up 19 percent this year and has jumped 53 percent
since a record low in early March but is still down about 15
percent from the level prevailing just before the collapse of
Lehman Brothers a year ago.
                                
 Banks were among the top gainers, with Commerzbank jumping
nearly 12 percent after the bank said it will repay outstanding
state guarantees immediately. Martin Blessing, the company's
chief executive, said it still expects to reach its profit
targets.
                                
 Other financial stocks were also higher. Standard Chartered
<STAN.L>, HSBC <HSBA.L>, Barclays <BARC.L>, Societe Generale
<SOGN.PA>, Credit Agricole <CAGR.PA> and Swedbank <SWEDa.ST>
rose between 1 percent and 3.4 percent.
                                
 "The market has been helped by the merger and acquisition
news this week. It just boosts sentiment and investors feel that
M&A activities could drive the market again," said Chicuong
Dang, equity analyst at Richelieu Finance, in Paris.
                                
 "But we haven't seen any strong evidence of a sustainable
recovery going forward. We need to see strong macroeconomic data
to show that things are getting better."
                                
 Kraft Foods <KFT.N>, North America's biggest food company,
said on Tuesday it was intent on pursuing Britain's Cadbury
<CBRY.L> despite the confectionary company's rejection of a
$16.7 billion bid made on Monday. [ID:nL7524247]
                                
 Natixis said in a report that the second half of 2009 could
be the start of a new merger & acquisition cycle, naming SAP
<SAPG.DE>, AstraZeneca <AZN.L>, Swedish Match <SWMA.ST>,
Whitbread <WTB.L>, NH Hotels <NHH.MC>, MAN AG <MANG.DE> and
Aegis <AEGS.L> as some of the potential targets.
                                
 "The improvement in the macro picture and the low valuations
for targets should trigger action from investment funds even if
the setbacks during the period of mega-deals (2005-2007) are
still in minds," it said.
                                
 
                                
 SENTIMENT IMPROVES
                                
 Macroeconomic figures also helped boost market sentiment.
                                
 Britain's recovery prospects brightened after surveys showed
consumer morale improving, employers hiring again and price
pressures absent. Official trade data added to the upbeat tone,
with exports up 5 percent in July, the fastest increase since
January 2008. [ID:nL9232134]
                                
 The VDAX-NEW volatility index <.V1XI>, a measure of investor
risk appetite, fell 2.3 percent. The lower the index, the higher
is investors' appetite for risky assets.
                                
 Oil shares rose with crude oil prices <CLc1> as a fall in
the dollar made it cheaper for other currency holders and
increased demand. BP <BP.L>, Royal Dutch Shell <RDSa.L>, BG
Group <BG.L>, Tullow Oil <TLW.L>, Repsol <REP.MC>, Total
<TOTF.PA> and StatoilHydro <STL.OL> added 0.9-3.8 percent.
                                
 "If this recent strength is to continue then the strength in
commodity markets may have to play a pivotal role," said Jimmy
Yates, head of equities at CMC Markets.
                                
 "Oil prices have continued to rise ...  Gold prices also
remain at the higher levels and the moves in both of these will
in turn add further support to the heavyweight miners and oil
stocks," he added.
                                
 Among automakers, Renault rose 6.9 percent after Ghosn, also
chief executive of Japanese carmaker Nissan Motor <7201.T>, told
a newspaper he expected to see a pick-up in activity in the U.S.
and emerging markets in the first quarter of 2010.[ID:nL8523735]
                                
 BMW <BMWG.DE>, Daimler <DAIGn.DE>, Volkswagen <VOWG.DE> and
Peugeot <PEUP.PA> were up 0.3-7.7 percent.
                                
  Among other big movers, cement and building specialist
HeidelbergCement <HEIG.DE> jumped 13.8 percent, British Airways
<BAY.L> rose 5 percent and Thomas Cook <TCG.L> was up 4.6
percent. But Richemont <CFR.VX> fell 3.5 percent.
                                
 Across Europe Britain's FTSE 100 <.FTSE> closed 1.2 percent
higher at 5,004.30 points. Germany's DAX <.GDAXI> was up 1.7
percent and France's CAC 40 <.FCHI> rose 1.3 percent.
 (Editing by Greg Mahlich)