European shares bounce back on China stimulus talk

martes 25 de marzo de 2014 05:18 GYT

* FTSEurofirst 300 rises 0.7 pct

* Miners gain most on China stimulus talk

* easyJet gains after upgrading first half outlook

By Atul Prakash

LONDON, March 25 (Reuters) - European shares advanced in cautious trading on Tuesday on expectations that recent disappointing data from China might prompt the country to launch new stimulus measures to maintain the pace of economic growth.

Encouraging updates from companies such as Europe's largest home improvements retailer Kingfisher and British budget airline easyJet also improved market sentiment.

The biggest sectoral gainers were basic resources stocks , which rose 1.3 percent, with analysts saying that any monetary easing by the world's No. 1 metals consumer would support metal prices as well as improving mining sector profits.

"The stimulus talk is around and could certainly help markets to recover. If we see any relaxation on the monetary front, then this could mean that we see some relief in the commodity space," Gerhard Schwarz, head of equity strategy at Baader Bank, said.

"We saw cyclical sectors underperforming over the last couple of weeks and any kind of stimulus will certainly help the cyclical sectors more."   Continuación...