European shares surged to their highest closing level in more than a year today as a surge in quarterly profits at JPMorgan boosted sentiment, with banks and commodity stocks the biggest gainers, Reuters reported. The FTSEurofirst 300 index of top European shares closed up 2.1 percent at 1,016.24 points after earlier touching a high of 1,017.75 points. The benchmark index is up 57 percent since reaching a lifetime low on March 9 and is up 22 percent for the year, but down 38 percent from its mid-2007 peak. "We are going into a very positive earnings season. So far we have seen this, with Intel and JPMorgan. These are encouraging signs for the economy. It is not a time to desert equities" said David Buik, partner at BGC Partners in London. Intel's quarterly outlook and results soared past expectations late Tuesday, fueling optimism over a tech sector recovery before the crucial holiday season. Investor sentiment was also lifted after JPMorgan reported sharply higher third-quarter results, topping Wall Street expectations. Banks added the most points to the European index. HSBC, Banco Santander, Barclays and UBS were up 2.7 to 6.6 percent. Commodity stocks featured among the biggest performers on the index as crude rose 1.1 percent. BG Group, BP, Cairn Energy and Total gained 2.2 to 8.6 percent.
