German shares lead Europe higher after factory data
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* Euro STOXX 50 index up 0.4 pct
* German share outperform after factory data
* Italian shares fall, banks under pressure
By Atul Prakash
LONDON, May 2 (Reuters) - European equities bounced back on Monday after sharp declines in the previous session, with German shares outperforming the broader market after a positive manufacturing survey report.
However, trading volumes were expected to be thin as the UK market was closed for a public holiday.
The euro zone's blue-chip Euro STOXX 50 index was up 0.4 percent and Frances CAC gained 0.4 percent. Germany's DAX advanced 1 percent after a survey showing German factory activity rose to a three-month high in April, buoyed by rising demand at home and abroad.
"German equities are reacting positively after the factory activity data. It's a pleasant surprise, but I still think that we are not out of the woods yet," Koen De Leus, senior economist at KBC in Brussels, said. Continuación...