European shares trim losses after 13-month low on Fed optimism
* FTSEurofirst 300 ends 0.5 pct lower after falling 2.9 pct
* Bullard's comments, U.S. data help markets to recover
* Cyclicals among top decliners
By Atul Prakash
LONDON, Oct 16 (Reuters) - European equities trimmed their losses late on Thursday after hitting a 13-month low on concern that global growth is slowing, and U.S. shares recovered following new releases of economic data and a Fed official's comments on bond purchases.
U.S. equities gained after data showed initial jobless claims fell to their lowest in 14 years. In addition, St. Louis Federal Reserve Bank President James Bullard said the Fed may keep up its bond-buying stimulus, since inflation expectations had diminished.
"The market was technically extremely 'oversold' and investors were looking for an excuse to jump back into the market," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.
"Bullard's comments, though a repetition of his earlier statements, provided an opportunity to investors to close some of their short positions before going into the weekend. We could build tomorrow on the recovery that we saw today."
The FTSEurofirst 300 index of top European shares ended 0.5 percent lower at 1,245.78 points after falling as much as 2.9 percent to 1,215.62 points, the lowest since September last year. The index has fallen about 13 percent in four weeks. Continuación...