China stimulus talk helps European shares to rebound

martes 25 de marzo de 2014 07:45 GYT

* FTSEurofirst 300 index rises 1 percent

* Miners gain most on China stimulus talk

* Kingfisher jumps on plan to return capital

By Atul Prakash

LONDON, March 25 (Reuters) - European stocks bounced back on Tuesday, led by miners on speculation that recent disappointing Chinese data might prompt Beijing to launch fresh stimulus 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 bolstered market sentiment.

The broader stock market was boosted by a 1.7 percent jump in the European basic resources index. Analysts said that any monetary easing by China, the world's biggest metals consumer, had potential to support metal prices and improve mining sector profits.

"The recent flow of weaker-than-expected data from China has increased the probability of a policy response. Such a move will calm fears regarding a sharper slowdown in the economy and that will have a positive read-across for global growth and the sectors exposed to China," Robert Parkes, equity strategist at HSBC Securities, said.

"Mining is a sector that is relatively sensitive to developments in the Chinese economy."   Continuación...