* European stock markets rebound after China-linked losses
* Alstom surges on signs that GE deal to get approval
* European bourses in 2015: link.reuters.com/pap87v
* Asset performance in 2015: link.reuters.com/gap87v (Adds euro zone data, dividends, Greece)
By Sudip Kar-Gupta
LONDON, Aug 17 (Reuters) - European stocks rose on Monday, rebounding from losses last week caused by worries over currency devaluation in China, with French industrial group Alstom outperforming on bets its takeover will be approved.
The pan-European FTSEurofirst 300 index, which fell 3 percent last week, rose 0.3 percent while the euro zone’s blue-chip Euro STOXX 50 index progressed 0.4 percent.
Alstom shares rose 6.9 percent after two people familiar with the matter told Reuters that General Electric was expected to get EU approval for a proposed 12.4 billion-euro ($13.8 billion) bid for Alstom’s power business.
Shares in Hennes & Mauritz advanced 1.1 percent after the fashion retailer reported higher sales.
Europe’s second-quarter earnings season has been one of the best in five years and has also come at a time of rising dividend payouts to shareholders, giving equities a fresh lift.
“Despite a constant ‘wall of worry’ Europe is delivering on growth,” UBS strategist Joao Toniato wrote in a note to clients.
“European profit margins are expected to improve in 2015. And the recovery is being driven by Italy and Spain.”
Carmaker BMW rose 1.6 percent, with other European automakers also rising after Barclays analysts said that even though the Chinese economy was slowing down, the worst-case scenario had already been priced in for BMW.
Equity strategists at JP Morgan said China’s currency devaluation last week was not a game changer for stocks. “We remain bearish on commodity equities, but believe the weakness in consumer plays should not continue,” strategist Mislav Matejka said.
Both the Euro STOXX 50 and FTSEurofirst are up around 10 percent since the start of 2015, as economic stimulus measures from the European Central Bank have helped to prop up the region’s stock markets in the face of worries over China and Greece’s debt problems.
The latest twist in Greece’s struggle to avert financial ruin was the prospect of a confidence vote following a rebellion among lawmakers from the ruling Syriza party over the country’s new bailout deal.
The Athens stock market was up 0.4 percent, having given up the bulk of earlier gains. The index remains down by nearly 20 percent since the start of 2015.
Today’s European research round-up
Editing by John Stonestreet and Digby Lidstone