European shares buoyed after miners receive China boost

miércoles 16 de julio de 2014 04:04 GYT
 

* FTSEurofirst 300 up 0.56 percent at 1365.93

EDINBURGH, July 16 (Reuters) - European shares gained in early deals on Wednesday, buoyed by strength in miners after Chinese growth slightly beat expectations, hinting at resilient demand in the world's largest metals consumer.

The STOXX Europe 600 Basic Resources index rose 0.7 percent, a top sectoral performer, after the world's second-largest economy posted quarterly growth of 7.5 percent from a year earlier, just ahead of a median forecast of 7.4 percent in a Reuters poll.

"It confirms the trend we've seen from improving PMI data, and is in line with the idea of a pick-up in the global economy," said James Butterfill, global equity strategist at Coutts.

"There's a close correlation between Chinese industrial production and the mining sector, so this pick-up is encouraging."

Global miner Rio Tinto rose 1.6 percent after reporting a sharp rise in iron ore output as it steps up shipments to Chinese steel mills.

Rio is a top pick for analysts at Citi, who wrote in a note to clients that recent Chinese economic data showed signs of a broad stabilisation.

Dutch blue chip toolmaker ASML, down 1 percent, and Swedish telecoms firm Tele2, down 1.1 percent, both reported better-than-expected quarterly earnings but had a cautious tone for their full-year outlook statements.

Analysts at Espirito Santo said that "uncertainty remains high" for Tele2.   Continuación...