European shares bounced back on Wednesday to trade near their highest level in more than 13 months, with investors waiting for U.S. inflation and housing starts figures later in the day for clearer market direction, according to Reuters. At 0903 GMT, the FTSEurofirst 300 index of top European shares was up 0.3 percent at 1,033.22 points after falling 0.4 percent in the previous session. A rise above 1,035.59 would be the highest level since October last year. The index, which slumped 45 percent last year, is up 24 percent in 2009 and has surged 60 percent since hitting a record low in early March. Energy shares gained ground after crude prices rose 0.7 percent on an industry report showing U.S. crude stocks fell steeply last week. BP, Royal Dutch Shell, BG Group, Tullow Oil, Repsol, Total and StatoilHydro added 0.1 to 0.8 percent. "Our expectation is that we can add to these gains. The interest rate environment is very friendly and that should be good news for companies. The third quarter reporting season has certainly been very supportive and boosted investors" confidence," said Henk Potts, equity strategist at Barclays Stockbrokers. "In reality, there will be a little bit of nervousness ahead of some key data. We will also get a good idea from the Bank of England"s minutes," he added. Minutes from the Bank of England"s November meeting are due at 0930 GMT, while U.S. CPI figures and housing starts numbers will be released at 1330 GMT. Miners got strength from higher metals prices as copper, aluminium, nickel and zinc rose 1.1 to 2.1 percent. BHP Billiton , Anglo American, Antofagasta, Rio Tinto, Xstrata and Eurasian Natural Resources rose 0.9 to 2.8 percent. In industry news, Europe"s steel industry has voiced strong opposition to a planned $116 billion iron ore joint venture by Rio Tinto and BHP Billiton and has called on European regulators to oppose the deal. Banks retreated after early gains. Standard Chartered, HSBC , Lloyds and Royal Bank of Scotland fell between 0.8 percent and 1.8 percent. HSBC traded ex-dividend. Cadbury added 1.1 percent after news that chocolate makers Hershey and Ferrero SpA were considering a joint bid for the British confectioner that could help it fend off a hostile takeover by Kraft Foods Inc. Dutch grocer Ahold rose 1.2 percent. It plans to cut costs by more than 350 million euros ($521 million) over three years as it looks to sharpen its competitive edge in its main U.S. market and boost its flagging shares. Across Europe, Britain"s FTSE 100 index, Germany"s DAX and France"s CAC 40 were 0.1 to 0.5 percent higher.
