* VW and Daimler among top performers
* Some investors see more room for China policy boost
* Fingerprint boosted by bullish broker note
By Sudip Kar-Gupta
LONDON, Jan 11 (Reuters) - European shares recovered some of last week’s hefty losses on Monday, helped by gains in the car sector and the potential for China to do more to prop up its slowing economy.
The pan-European FTSEurofirst 300 index rose 0.5 percent, but the previous week’s 7 percent slump meant the index remains near its lowest level in more than three months.
The euro zone’s blue-chip Euro STOXX 50 index advanced by 0.9 percent.
China allowed its yuan currency to strengthen for a second straight session on Monday in a move that could calm concerns over Beijing’s readiness to let the currency depreciate.
The development added to doubts over Beijing’s ultimate policy intent, however. It failed to stop investors selling Chinese shares, though some saw the move as a signal that China would work hard to support the world’s second-biggest economy.
“It is reassuring to see that China is still taking steps, and will likely take more steps, to prop up its economy,” Berkeley Futures’ associate director Richard Griffiths said.
Matt Fernley, analyst at Haitong Research, also thought it wrong to assume that the Chinese economy would tank simply because of the recent weakness in its stock market.
“Is China really in meltdown? We think not. The market seems to be taking the view that because the A-share market is in freefall this means that China is in freefall. We do not believe this is the case,” he said.
Shares in European carmakers were among the best performers in Europe.
Volkswagen rose 4.4 percent on news of plans to show U.S. regulators that it can fix some of the diesel emissions problems that have beset the German company.
Daimler, meanwhile, gained 2 percent after board member Hubertus Troska said that the company’s Mercedes-Benz luxury brand would continue to enjoy growth in China.
A rise for Spanish bank Santander, after an upgrade from analysts at Exane BNP Paribas, serve to lift other European banking shares higher, too.
In the technology sector, identity check specialist Fingerprint surged 10 percent after brokerage Arctic Securities gave the company a “buy” rating.
Today’s European research round-up