European shares see biggest rally since August, set for first weekly rise of 2016
* FTSEurofirst 300 gains, still down 7 pct this month
* Energy, mining shares lead advance as commodity prices rise
* Tod's rises after strong sales (Adds quote, detail)
By Alistair Smout and Danilo Masoni
LONDON/MILAN, Jan 22 (Reuters) - Europe's top equity index was headed on Friday for its biggest one-day gain since August and its first weekly rise this year, buoyed by a rally in energy shares from near a 12-year low.
The pan-European FTSEurofirst 300 was up 3.6 percent at 1,340.06 points by 1520 GMT, up 3.3 percent for the week. It was the first weekly rise of 2016 and the biggest weekly gain October.
The market has been rocked by a drop in the price of oil to its lowest in more than a decade, as well as by concern over global growth. Many investors said the concern was overdone.
"Markets have gone sharply against us so far this year, but the actual underlying economic fundamentals continue to support our positive view for 2016," said Alan Higgins, UK Chief investment officer for Coutts.
The index extended a rally from the previous session, when it gained 2.1 percent after European Central Bank head Mario Draghi said financial-market turmoil and concern over China would prompt the bank to review its monetary policy in March. Continuación...