LONDON, March 1 (Reuters) - European shares extended the previous session's gains to set a one-month high on Tuesday, with London Stock Exchange leading the market higher after Intercontinental Exchange confirmed a possible counter bid for LSE.
Some investors also expected that downbeat data showing activity in China's manufacturing sector shrank more sharply than expected in February would prompt the authorities to announce further stimulus measures.
Shares in London Stock Exchange Group surged 7.5 percent, leading the pan-European FTSEurofirst 300 index, which rose 0.3 percent to its highest level in nearly one month after gaining 0.7 percent in the previous session.
However, Barclays fell 7.3 percent after the bank reported a 2 percent fall in full-year adjusted pre-tax profit and unveiled plans to simplify its UK and international operations. (Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)