European shares led higher by Italy banks, miners

lunes 11 de abril de 2016 07:21 GYT

* FTSEurofirst 300 up 0.8 pct

* Italian banks outperform on hopes of a state plan

* Nestle lower as shares go ex dividend

* SAP recovers after mixed update (ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). Adds details, updates prices)

By Danilo Masoni and Alistair Smout

MILAN/LONDON, April 11 (Reuters) - European shares were higher on Monday, reversing earlier losses, helped by gains in Italian banks and mining stocks.

The pan-European FTSEurofirst 300 index had risen 0.8 percent to 1,314.42 points by 1109 GMT, after gaining 1.2 percent in the previous session. In spite of the gains the index is down almost 9 percent so far this year.

The Italian banking sector index rose sharply for a second straight session on hopes the Italian government will soon thrash out a plan to set up a state-backed fund to buy bad loans and plug capital shortfalls.

"(There) seems to be a reaction to central bank news surrounding the creation of a recapitalisation fund in Italy to shore up the banks," said James Helliwell, Head of Markets, Lex van Dam Trading Academy.   Continuación...