Eurostoxx 50:3,068.00 (+3.46) Frankfurt DAX:7,426.81 (+21.30) Paris CAC:4,157.14 (+4.83)

EUROPEAN SHARES ended flat near 29-month highs yesterday, with mining stocks among the top fallers after China again tightened monetary policy in an attempt to rein in inflation.

A report citing European Central Bank policymaker Lorenzo Bini Smaghi repeating its readiness to raise interest rates if needed also weighed and the FTSEurofirst 300 ended down 0.01 per cent at 1,187.03 points.

It was the fifth straight day the index has closed at or near 29-month highs but some said it was due a retreat.

“People are now expecting rate rises sooner rather than later,” said Robert Quinn, chief European strategist at Standard Poor’s. “Any talk about raising rates sooner than expected will pull the market back.”

However, Greek banks surged. EFG Eurobank Ergasias rose 21 per cent, Piraeus Bank climbed 20 per cent and Alpha Bank rose 9.9 per cent. They jumped after the National Bank of Greece, the country’s largest lender, offered to buy Alpha, aiming to create the strongest bank in the country and one of the biggest in southeast Europe.

Cap Gemini, Europe’s biggest computer-services company, climbed 8 per cent after saying full-year profit rose 57 per cent to €280 million on stronger demand for its technology.

Danone advanced 5.2 per cent. The world’s biggest yogurt-maker said full-year profit rose 18 per cent on sales of Aqua bottled water and Dumex infant formula in Asia.

Swedish firm Meda gained 12 per cent after the drug-maker doubled its dividend to two kronor per share and reported higher-than-expected fourth-quarter earnings of 184 million kronor .

The leading European stock gainers were the world’s two largest cement-makers, France’s Lafarge and Swiss-based Holcim, both of which ended up more than 3 per cent after Lafarge’s UK tie-up, debt plans and demand outlook were well received.

Leading the downside, Portuguese retailer Jeronimo Martins ended down 5.7 per cent after posting a weak outlook.

Gestevision Telecinco lost 6.7 per cent. Spain’s largest commercial television station was cut to “underperform” from “neutral” at Bank of America Merrill Lynch. – (Reuters/Bloomberg)