European shares head for best month in over 3 years
* FTSEurofirst 300 dips but set for best month since Oct '11
* 'Europe on the verge of an upgrade cycle' - Morgan Stanley
* European equities see biggest inflows since Dec 2013
By Blaise Robinson
PARIS, Jan 30 (Reuters) - European stocks dipped on Friday but remained on track to post their best monthly performance in over three years, lifted by hopes the European Central Bank's quantitative easing programme will revive the region's economic growth and corporate earnings.
The FTSEurofirst 300 index of top European shares was set to record a gain of 7.1 percent for January, its biggest since October 2011. It has strongly outpaced Wall Street, where the S&P 500 has lost 2.3 percent since the start of the year.
Morgan Stanley strategists upgraded their forecast for European earnings for the first time in three years, seeing an improvement in the region's economic momentum this year.
"After four years of persistent growth disappointment, we believe that Europe is on the verge of an upgrade cycle. This will be one of the dominant factors influencing investment returns in Europe this year," they said in a note.
"European net earnings revisions have been in negative territory since March 2011. Over the next 1-2 months we believe this series is likely to move into positive territory as analysts adjust their forecasts for the significant moves we've seen in FX, rates and the oil price." Continuación...