European shares led higher by miners, China worries persist

martes 5 de enero de 2016 11:53 GYT

* FTSEurofirst 300 index up 0.4 pct

* Mining and telecoms stocks among top gainers

* Next shares fall after trading update (Adds detail, updates prices)

By Danilo Masoni and Atul Prakash

MILAN/LONDON, Jan 5 (Reuters) - European shares were higher in volatile trade on Tuesday, supported by a rally in mining and telecoms stocks, though worries over China persisted a day after poor Chinese factory data triggered a global stocks sell-off.

Vague market talk that the European Central Bank might do more to stimulate the euro zone's economy after weaker than expected inflation data for December was also cited by traders as a supporting factor.

The pan-European FTSEurofirst 300 index was up 0.4 percent by 1534 GMT, having fallen 2.5 percent on Monday as a 7 percent decline in Chinese markets sent it to its biggest one-day drop since early December.

The heavyweight German index DAX, however, remained in negative territory, down 0.04 percent, emphasising the fragility of market sentiment.

"Short-term uncertainty continues and stocks could reach new lows in the next few weeks, possibly creating some interesting buying opportunities," said Alessandro Allegri, CEO of Italian asset manager Ambrosetti Asset Management.   Continuación...