REFILE-European shares inch lower as China uncertainty continues to weigh

martes 5 de enero de 2016 08:35 GYT

(Amends wording of headline)

* FTSEurofirst 300 index down 0.2 pct

* Mining, telecom stocks among top gainers

* Next shares fall after trading update

* Euro STOXX 50 Volatility Index up 1.3 pct

By Danilo Masoni and Atul Prakash

MILAN/LONDON, Jan 5 (Reuters) - European shares edged lower on Tuesday, giving up earlier gains as uncertainty over China continued to weigh on sentiment, while gains among telecoms and miners provided some support.

The pan-European FTSEurofirst 300 index fell 0.2 percent by 1121 GMT after falling 2.5 percent on Monday, its biggest one-day drop since early December, following a 7 percent drop in Chinese markets.

European equities tried to bounce back in early deals following a stabilisation in China, a day after poor Chinese factory data triggered a global sell-off. But the rebound was short lived and volatility was rising with the Euro STOXX 50 Volatility Index up 1.3 percent.   Continuación...