European shares ended at their best level in 28 months on Wednesday as U.S. core inflation data eased fears of sharply higher interest rates, while a new retreat in oil prices buoyed airlines. Upbeat earnings and guidance from British cell phone service operator mm02 and robust U.S. numbers on industrial production and housing starts, also helped offset worries about the negative impact of a record-high euro on exporters. Swedish domestic appliance maker Electrolux was another standout stock, rallying 6 percent as a media report singled it out as a possible takeover target by private equity firms. Electrolux declined to comment on the report. The FTSEurofirst 300 index of pan-European blue chips gained 0.88 percent to end at 1,036.2 points. The narrower DJ Euro Stoxx 50 index added 1.5 percent to 2,922.2 points. Shares in fuel-hungry airlines like Air France-KLM and Ryanair rose sharply as U.S. government data showing crude oil stocks building for an eighth straight week ahead of winter helped U.S. oil prices extend a 17-percent fall from late-October's record high of $55.67 a barrel. The new retreat helped calm worries over the impact of high energy prices on corporate profits and households' spending power. --More 2103 Local Time 1803 GMT
