Europe shares rebound from lows on bargain-hunting

LONDON, May 26 (BestGrowthStock) – European equities bounced back on
Wednesday from nine-month lows a day earlier, with investors
returning to the market to buy beaten-down stocks, while a
recovery in commodity prices supported resource-related shares.

At 0704 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was up 1.3 percent at 962.39 points after
falling 2.4 percent in the previous session.

But investors stayed cautious in buying European stocks,
which were down more than 15 percent at Tuesday’s close from a
high reached about six weeks ago, as concerns persisted that the
euro zone debt crisis could slow the flow of credit and hit the
financial sector.

“There is always bargain-hunting once we have seen markets
fall. But it would be too early to expect confidence to creep
back into the market,” said Klaus Wiener, head of research at
Generali Investments.

Miners got strength from higher metals prices. BHP Billiton
(BLT.L: ), Anglo American (AAL.L: ), Antofagasta (ANTO.L: ), Rio Tinto
(RIO.L: ), Xstrata (XTA.L: ) and Eurasian Natural Resources (ENRC.L: )
rose 1.7 to 3.6 percent.

Stocks

(Reporting by Atul Prakash)

Europe shares rebound from lows on bargain-hunting