Italy and Spain outperform as European shares extend rally

lunes 9 de junio de 2014 06:30 GYT

* FTSEurofirst 300 up 0.2 pct, Euro STOXX 50 up 0.1 pct

* Volumes low as public holiday in most of Europe

* Gecina drops as Metrovacesa sells stake

By Blaise Robinson

PARIS, June 9 (Reuters) - The Italian and Spanish stock markets slightly outperformed on Monday, as European shares built on last week's rally to leave key regional indexes hovering near multi-year highs.

Italy's FTSE MIB equity index rose 0.2 percent while Spain's IBEX advanced 0.4 percent, beating a 0.1 percent rise on Germany's DAX, as investors stepped up bets that southern European markets would benefit most from the European Central Bank's economic stimulus measures last week.

The ECB cut interest rates, launched a series of measures to pump money into the euro zone economy and pledged to do more if needed to fight off the risk of Japan-like deflation, sparking a rally in European equities.

The Italian and Spanish markets are more heavily weighted towards "cyclical" stocks such as banks, which often outperform in a strengthening economic cycle, than other European markets.

Luca Paolini, chief strategist at Pictet Asset Management, said he would favour such "cyclical" equity sectors for now, while Saxo Banque trader Pierre Martin said the trend for European stock markets remained positive.   Continuación...