European shares set for positive week after BOJ rate move
* FTSEurofirst 300 index up 1.4 pct, set for weekly gains
* Sabadell rises after strong results, Italy banks up
* basic resources stocks hit by warning over steel market (Adds details, updates prices)
By Danilo Masoni and Atul Prakash
MILAN/LONDON, Jan 29 (Reuters) - European equities looked set to end the week on a high after the Bank of Japan stunned markets on Friday by voting narrowly to introduce negative interest rates in a bid to revive inflation.
Equities were also underpinned by hopes the U.S. Federal Reserve would go slow on future interest rate hikes following weaker-than-expected GDP data from the world's largest economy.
Japan's central bank said it would charge 0.1 percent for excess reserves parked with it, an aggressive deflation-fighting policy pioneered by the European Central Bank.
"The BOJ decision was a massive surprise, it's further money printing from Japan on a massive scale after having told the markets that they're not doing it. That triggered European investors to push the risk on button on," Will Hamlyn, investment analyst at Manulife Asset Management said.
The pan-European FTSEurofirst 300 index had risen 1.4 percent by 1437 GMT after falling by 1.7 percent in the previous session. The gains meant the index was set to notch up its second consecutive week of gains. Continuación...