European shares edge higher

Edinburgh - European shares edged higher on Wednesday, following fresh highs in US markets and a three-year peak for Asian stocks, though dashed hopes for deal-making in the French telecoms sector kept a lid on gains.

At 09:11 the pan-European FTSEurofirst 300 index was up 0.2% at 1 385, with benchmark indexes in Germany, UK and Italy all in positive territory.

The French blue-chip CAC 40 index, however, fell 0.1%, with Orange, Bouygues and Iliad down between 2.9% and 4% after Orange said on Wednesday it was dropping the idea of taking part in tie-ups in the French telecoms market.

Telecom-equipment maker Alcatel-Lucent rose 4.6%, the top perfomer on the FTSEurofirst 300 index, after it was lifted to "overweight" from "neutral" by JP Morgan.

The Stoxx 600 autos and parts sector rose 1%, the top sectoral riser, after US car sales data came in ahead of expectations for most major firms in the sector, hitting levels not seen since July 2006.