LONDON (MarketWatch) -- European shares finished higher Thursday, with metals stocks leading gains after Alcoa kicked off the U.S. third-quarter earnings season with a strong set of results. Additionally, two of the region's major central banks continued with a policy of ultra-low interest rates on the one-year anniversary of coordinated global interest-rate cuts. The pan-European Dow Jones Stoxx 600 index (ST:SXXP 243.44, +3.14, +1.31%) climbed 1.3% to close at 243.44 in a broad-based move. On a regional level, the U.K. FTSE 100 index (UK:UKX 5,155, +45.74, +0.90%) rose 0.9% to settle at 5,154.64, the German DAX index (DX:DAX 5,717, +75.79, +1.34%) climbed 1.3% to end at 5,716.54 and the French CAC-40 index (FR:PX1 3,807, +50.40, +1.34%) jumped 1.3% to finish at 3,806.81. All Asian stock markets except Taiwan ended with gains, with Australian shares sharply higher after a better-than-expected jobs report. See Asia Markets. U.S. stocks also climbed after the Alcoa (AA 14.53, +0.33, +2.29%) results. The U.S. aluminum giant reported a surprise third-quarter profit late Wednesday and posted revenue that beat Wall Street estimates. Basic resource stocks led the advance in Europe as shares of Anglo American (UK:AAL 2,182, +84.50, +4.03%) rose 4%, Randgold Resources (UK:RRS 4,691, +96.00, +2.11%) shares climbed 2.1% and steel giant ArcelorMittal (NL:MT 25.74, +1.03, +4.17%) (MT 38.06, +1.69, +4.64%) rose 4.2%. Support for the mining sector also came after gold futures touched a record as the dollar weakened against most major currencies including the euro and sterling. See full story. Gold prices are making new highs but 10-year Treasury yields remain relatively low, commented Bernard McAlinden, strategist at NCB Stockbrokers. "That's not inflation fears but expectations that interest rates will stay low and that's a positive for equity markets," he said. The European Central Bank kept rates at 1% and the Bank of England stayed pat at 0.5% on Thursday on the one-year anniversary of coordinated central-bank interest-rate cuts. Read more on ECB, BoE. On Oct. 8, 2008, the Fed, the ECB, the Bank of England and central banks from Canada, Switzerland and Sweden simultaneously announced a coordinated plan to cut key interest rates in an effort to quell global financial turmoil. Although most countries continue to keep rates on hold at low levels, Australia surprised the market earlier this week with a hike. McAlinden at NCB says the move provided some hope for financial markets about the broader economic backdrop. "I think that the market looked at it and saw one G20 economy where the economic environment is sustainable enough to raise interest rates and that was seen as a positive indicator across the globe," he said. Other sectors performing well on Thursday in Europe included those that are sensitive to a better economic environment, such as industrials and auto makers, with Siemens (DE:SIE 64.54, +1.56, +2.48%) (SI 95.53, +2.99, +3.23%) shares up 2.5% and Peugeot (FR:UG 21.59, +0.97, +4.68%) shares up 4.7%. Other companies in focus included Anheuser-Busch InBev (BE:ABI 32.52, +0.89, +2.80%) . Shares of the firm rose 2.8% after inking a pact to sell its theme park division to Blackstone Group for as much as $2.7 billion. See full story. Shares of France's EDF (FR:EDF 39.60, +1.09, +2.82%) rose 2.8% after Goldman Sachs added the electricity giant to its conviction buy list. The investment bank said EDF shares are not discounting improvement in French power tariffs and control of costs, among other factors. Arkema (FR:AKE 27.14, +2.10, +8.37%) shares jumped 8.4% after the chemicals group that was spun off from oil major Total was started at outperform by broker CA Cheuvreux, Bloomberg News reported. In the banking sector, Lloyds Banking Group (UK:LLOY 94.31, -1.35, -1.41%) (LYG 6.11, -0.08, -1.30%) shares fell 1.4%. A report in the Financial Times said the lender is considering a 15 billion pound ($24 billion) rights issue to extricate itself from the U.K. government's asset-protection program. See full story. Shares of Irish drinks maker C&C Group (UK:CCR 2.92, -0.07, -2.34%) declined 2.3% after it said that its first-half attributable profit fell almost 10% to 51.9 million euros. Spirits and liqueurs volumes declined by 15% due to continuing de-stocking in major markets.

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