European shares recover as BES and miners bounce back

miércoles 16 de julio de 2014 06:14 GYT

* FTSEurofirst 300 up 1 pct, Euro STOXX 50 up 1.2 pct

* BES up nearly 20 pct after it hit record lows Tuesday

* Mining stocks buoyed by Chinese economic growth

By Sudip Kar-Gupta

LONDON, July 16 (Reuters) - European equity markets recovered on Wednesday from losses in the previous session as a rebound in Banco Espirito Santo and in mining stocks lifted the region's bourses.

The pan-European FTSEurofirst 300 index, which had slipped back 0.4 percent on Tuesday, was up by 1 percent at 1,372.48 points while the euro zone's blue-chip Euro STOXX 50 index rose 1.2 percent to 3,190.12 points.

Banco Espirito Santo (BES) rose nearly 20 percent to rebound from having fallen to record lows on Tuesday, enabling Lisbon's benchmark PSI-20 index to advance by 2.9 percent.

Traders said that even though BES remained dogged by the fact that a holding company of the bank's founding family had failed to repay a $1 billion loan, some investors were now starting to think the stock represented a relative bargain.

"There must be investors there counting that most of the impact is already priced in and it's time to buy," said Fincor analyst Albino Oliveira.   Continuación...