Miners and telecoms help European shares bounce back
LONDON Jan 5 (Reuters) - European shares bounced back on Tuesday following a rally in mining and telecom stocks 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.
Chinese regulators leapt to support the country's 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 pan-European FTSEurofirst 300 index was up 1 percent at 1,415.77 points after slumping 2.5 percent on Monday, its biggest one-day drop since early December.
The STOXX Europe 600 Basic Resources index jumped 2.3 percent, the top sectoral gainer, as prices of key industrial metals rose 1.1 to 1.6 percent after slumping in the previous session. Anglo American, BHP Billiton and Glencore rose 2.7 to 3.1 percent.
Telecoms stocks also outperformed, after French telecom operator Orange confirmed it was in renewed preliminary talks about a merger with domestic rival Bouygues Telecom. Bouygues rose 1.4 percent, Altice climbed 4.3 percent and Numericable surged 6.4 percent.
However, British clothing retailer Next fell 3 percent after saying its sales performance in the run-up to Christmas was disappointing, blaming unusually warm weather in November and December, poor stock availability and increased online competition. (Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)
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