LONDON: European shares bounced back after a shaky start on Wednesday as stronger metals prices on restocking by Chinese consumers helped miners, while analysts said Slovakia is expected to soon give its long awaited approval for the euro zone rescue fund.
The European mining index , which fell 0.8 percent earlier in the session, gained 0.9 percent after copper prices rose more than 2 percent and other key base metals also advanced. Analysts said Chinese consumers were buying copper to meet immediate demand which has tightened supply in Asia.
At 0847 GMT, the FTSEurofirst 300 index of top European shares was up 0.2 percent at 963.05 points after falling to a low of 952.50 earlier in the session. But the index is still down about 15 percent this year on concerns of a Greek default and the debt crisis spreading to other countries.
"Markets are clearly still hoping for a comprehensive plan to tackle the (euro zone) debt crises. This may continue to support the market over the next couple of months," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.
"In Slovakia, a 'yes' vote may follow shortly. However, it once again demonstrates how difficult a democratic decision process with 17 members (of the euro zone bloc) may be."
Parties in Slovak Prime Minister Iveta Radicova's outgoing government will hold talks with the opposition to reach a quick agreement on ratifying a plan to strengthen the euro zone's EFSF rescue fund, a party spokesman said.
Lawmakers rejected a plan to bolster the European Financial Stability Facility (EFSF) in a vote on Tuesday, toppling the centre-right cabinet, but a second vote with opposition support is likely to approve the pact within days. Slovakia is the only euro zone member yet to ratify the plan.
Basic resources shares came under pressure earlier in the session after weaker than expected results overnight from US aluminum giant Alcoa following tough economic conditions.
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