European shares closed higher on Tuesday, underpinned by upbeat U.S. stocks and metal firms, but worries about interest rates and a weakening real estate sector capped the upside. The FTSEurofirst 300 index of top European shares ended 0.2 percent higher at 1,536.32. U.S. stock indexes were 0.3 to 0.7 percent higher on the day. "I think that it's just a rebound because we got a drop yesterday," said Jean-Luc Buchalet, strategist at Jacques Chahine Finance. "Some people are waiting for a consolidation in the next few days or few weeks." Carrefour, the world's second largest retailer, was among the top gainers, up 3.9 percent after Chairman Luc Vandevelde's purchase of 215,000 shares in the company was seen as a vote of confidence in its future. Metal firms rose on higher copper prices, also helped by a newspaper report that BHP Billiton Ltd., and Rio Tinto Ltd. were studying takeover plans for U.S. aluminum producer Alcoa Inc. But sources told Reuters BHP Billiton was not currently working on a bid. The outlook for interest rates, however, cast a shadow, with initial estimates for fourth-quarter euro zone growth coming in higher than expected. Investors were also keeping an eye out for Fed Chairman Ben Bernanke's two-day testimony before Congress later this week. Euro zone data showed that economic growth picked up to 0.9 percent in the fourth quarter of 2006 from 0.5 percent in the previous three-month period and exceeded the 0.6 percent median forecast from a Reuters poll.
