European shares gain as commodity stocks recover
* FTSEurofirst 300 index gains 0.5 percent
* Energy and mining stocks recover
* Volkswagen shares remain volatile
By Atul Prakash
LONDON, Sept 23 (Reuters) - European shares climbed higher on Wednesday after slumping to a one-month low in the previous session, with a recovery in crude oil prices supporting beaten-down energy companies.
However, Volkswagen remained volatile after its recent slump on allegations of rigging emissions tests. It fell nearly 10 percent in early trading before rising 1.5 percent. It is still down 34 percent so far this week, with Deutsche Bank saying that the scandal is an "investor's nightmare".
The market got some support from the energy sector as crude rose percent after falling sharply following a survey showing activity in China's factory sector shrank to its weakest level in 6-1/2 years. The European oil and gas index rose 1.3 percent.
"Somewhat surprisingly, the negative reaction to the disappointing Chinese data was very limited indicating that much of the bad news has already been priced in," Markus Huber, senior analyst at Peregrine & Black, said.
"As the Volkswagen shock slowly fades, general positive economic fundamentals and supportive central bank stances should increasingly lend support to markets." Continuación...