Rally in mining and telecom shares helps European equities

martes 5 de enero de 2016 05:21 GYT

* FTSEurofirst 300 index rises 0.6 percent

* Mining, telecom stocks among top gainers

* Next shares fall after trading update

By Atul Prakash

LONDON, Jan 5 (Reuters) - European shares bounced back on Tuesday after a rally in mining and telecom stocks and some stabilisation in Chinese markets, a day after poor Chinese factory data triggered a sharp sell-off that 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 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.

"Chinese markets managed to stabilise on hopes that the central bank and the authorities will take measures to support economic growth. And they have quite a bit of weaponry in their arsenal like lowering the reserve requirements and cutting interest rates," Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets, said.   Continuación...