European shares edge back up towards three month high

European shares edged higher on Monday, consolidating gains from a strong week which saw a top index touch a three month high, with some encouraging earnings reports helping to support the market.

The pan-European FTSEurofirst 300 index was up 0.1 per cent at 1,373.16 points, and was just 0.9 per cent off from last Thursday’s peak, which was its highest level since January.

The index ended up 1.6 per cent for the week, a second straight weekly gain.

German plastics and chemicals company Covestro rose 2.5 per cent after its results.

It said that its adjusted core earnings gained 22 per cent in the first quarter, as it benefited from cheaper raw materials.