European sharemarkets posted gains on Wednesday, led higher by banks and mining shares.

Shares in international mining company BHP Billiton gained nearly five percent to reach a record high over speculation that Chinese company Aluminum Corporation may purchase a stake in the company.

France's largest bank, BNP Paribas also added nearly five percent to top the 70 Euro per share mark, while Europe's largest carmaker, Volkswagen, and consumer-electronics maker Royal Philips Electronics, also made good gains following a report from the US Labor Department that American inflation eased up somewhat in April.

At the close of trading on Wednesday, the FTSEurofirst 300 index of pan-European blue chips added 8.620 points, or 0.640 percent, to close at 1,354.70, while the UK's FTSE 100 index made slight gains, adding 4.10 points, or 0.07 percent, to close at 6216.00.

France's CAC index gained 56.57 points, or 1.13 percent, to close at 5055.24, while, Germany's DAX index 23.05 points, or 0.33 percent, to close at 7083.24.

On the commodity markets, Brent Crude oil dropped 22 US cents or 0.2 percent, to be worth US$122.03, while on the Forex Gold Index, gold added US$1.50, or 0.2 percent, to close at US$866.50.

© NewsRoom 2008