Growth stocks lead broad European share bounce
LONDON, July 8
LONDON, July 8 (Reuters) - European shares rose in a broad-based rebound on Monday, led by stocks more exposed to economic growth on optimism about recovery in the United States, albeit in thin trade.
The FTSEurofirst 300 provisionally closed up 1.4 percent at 1,179.31, having dropped 1.3 percent on Friday when robust U.S. jobs data lifted expectations the Federal Reserve will start to scale back its stimulus soon.
"The markets are trying to make up their minds as to whether (stimulus) tapering is a positive or a negative... I would say (it is) a positive because it means that the economy is recovering," Michael Hewson, analyst at CMC Markets, said.
But light volumes exaggerated the market moves as investors waited for further clarification on U.S. stimulus plans on Wednesday, when Fed Chairman Ben Bernanke is set to speak after the release of the latest Federal Open Market Committee minutes.
Trading volume for the FTSEurofirst 300 stood at just 73 percent of the 90-day daily average.
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