European shares extend rally, led by commodities stocks
* FTSEurofirst 300 sharply up, still down 7 pct this month
* Energy, miners lead gains on strong commodity prices
* Philips underperforms after 3.3 billion disposal fails (Adds details, updates prices)
By Danilo Masoni
MILAN, Jan 22 (Reuters) - European equities rose sharply on Friday, adding to gains made in the previous session on ECB stimulus hints, with bouncing commodities prices boosting energy and mining stocks.
By 0908 GMT, the pan-European FTSEurofirst 300 was up 2.5 percent at 1,326.82 points. The index gained 2.1 percent on Thursday after European Central Bank head Mario Draghi said financial markets turmoil and concerns over China will prompt a March review of the bank's monetary policy.
In spite of the gains the FTSEurofirst 300 is down more than 7 percent since the start of the year and some investors remained cautious saying the rebound could be short-lived.
"It needs to be seen if and for how long merely comments and, at best, potential prospects of further ECB action will manage to push concerns about the Chinese economy and global growth in general out of the limelight," said City of London Markets trader Markus Huber. "
"More action will be needed by other central banks like the BOJ and the PBoC in order to bring much needed long-term calm and optimism back into the markets," he added. Continuación...