European shares steady on interest rate outlook, led by autos
* FTSEurofirst 300 up 0.3 percent
* Auto sector top sectoral gainer, VW turns higher
* TeliaSonera drops 3 pct after newspaper report
* Bouygues rises after defending standalone strategy
By Alistair Smout and Danilo Masoni
LONDON/MILAN, Oct 6 (Reuters) - European shares edged higher on Tuesday, extending strong gains in the previous session, with sentiment helped by expectations central banks in Europe and the U.S. will keep an equity-friendly monetary policy in the coming months.
The pan-European FTSEurofirst 300 rose 0.3 percent and the euro zone's blue-chip Euro STOXX 50 was up 0.2 percent. European shares had opened lower as some investors took profit following gains in the previous session which saw the FTSEurofirst 300 mark its biggest one-day rise since August.
"No doubt overall sentiment has improved over the past few days as uncertainty regarding an imminent US rate hike has been removed for now," said Peregrine & Black trader Markus Huber. "Firmer markets towards the end of the day would certainly confirm that the 'Bulls' are slowly gaining the upper hand again."
Concerns over the repercussions of an economic slowdown in China and uncertainty over when the U.S. Federal Reserve will end a decade of easing policies had driven European shares to nine-month lows at the end of last quarter. Now some investors think the sell off is overdone and believe European shares are well positioned to benefit from a rebound. Continuación...