European Factors to Watch-Shares seen bouncing back, miners may outperform
(Updates futures prices, adds company news)
LONDON Jan 5 (Reuters) - European shares were set to rebound on Tuesday following a recovery in commodities prices and some stabilisation in Chinese markets, a day after poor Chinese factory numbers triggered a sharp sell-off in local equities and hit world markets.
Futures for the Euro STOXX 50, Germany's DAX , Britain's FTSE and France's CAC rose 1.0 to 1.2 percent by 0755 GMT.
"Asian markets, led by China, appear to have found some stability overnight despite another volatile start to the trading day on Tuesday, which is providing a temporary boost to European futures ahead of the open," ONADA analyst Craig Erlam said in a note.
Chinese regulators leapt to support stock markets early on Tuesday, with the central bank pouring cash into the money market system and the securities regulator suggesting it might restrict share sales by major shareholders.
The securities regulator defended the functioning of the new "circuit breaker" policy that caused Chinese stock markets to suspend trade on Monday after markets fell 7 percent, triggering the mechanism on the very first day it came into effect. The CSI300 index of the largest listed companies in Shanghai and Shenzhen closed 0.3 percent higher on Tuesday.
Mining stocks will be in focus as prices of major industrial metals rose more than 1 percent after falling in the previous session on concerns about demand for raw materials in China, the world's biggest metals consumer.
The pan-European FTSEurofirst 300 index lost 2.5 percent on Monday, its biggest one-day drop since a 3.3 percent fall on Dec. 3, as weak Chinese data weighed on world stock markets. The euro zone's Euro STOXX 50 index fell 3.1 percent, while Germany's DAX slumped 4.3 percent.