* FTSEurofirst 300 up 2.64 points at 1,198.09
* China GDP data boost miners
* Commerzbank rallies on talk of stake sale
By David Brett
LONDON, July 15 (Reuters) – European shares rose on Monday
after Chinese GDP data assuaged fears of a sharp slowdown that
could hit global growth, and technical indicators pointed to
further upside.
By 1018 GMT, the FTSEurofirst 300 had risen 2.64
points, or 0.2 percent to 1,198.09.
Miners rose 0.5 percent after data showed China’s
economy grew 7.5 percent in the second quarter, in line with
forecasts and better than some investors had feared, although it
was the ninth slowdown in the last 10 quarters.
“While (Q2 GDP) is still below the 8 percent that at one
point was considered the minimum acceptable growth rate, it
would indicate a stabilisation in the economy that could provide
some support for the equity market,” J.P. Morgan Asset
Management Global Market Strategist Dan Morris said in a note.
European equities extended a recovery which has seen the
euro zone’s blue chip index rally 6.7 percent from
lows in June, underpinned by central banks’ continued commitment
to monetary stimulus, especially in Europe.
Funds invested in European shares recorded their biggest
weekly inflows in more than a year in the week to July 10,
according to EPFR data.
Steve Ruffley, chief market strategist for spreadbetting and
CFD provider InterTrader, said the Stoxx 50 has found support
around 2,662 and is now looking to test the upper daily
Bollinger band and key resistance at 2,746.
“From a technical perspective, the markets look to be
pushing higher, and are being driven by the fundamental words
from (Federal Reserve chairman) Ben Bernanke. Unless this week’s
data hold surprises, the bulls are back in town,” he said.
German lender Commerzbank rallied 3.9 percent on a
weekend media report that Finance Minister Wolfgang Schaeuble
has spoken to UBS about the possibility of the Swiss
bank buying the government’s remaining stake.
Frankfurt’s DAX index was around 50 points off its
intraday high at around 8,227.
Swedish banking group SEB gained 3 percent after
its second quarter operating profits beat expectations.
Merger activity helped boost technology stocks with
Invensys up 0.4 percent on reports General Electric
may lodge a $5.3 billion bid that could trigger a battle
for the British software company with France’s Schneider
Electric.
