European shares rise as miners buoyed by China growth

EDINBURGH, July 16 Wed Jul 16, 2014 3:13am EDT

EDINBURGH, July 16 (Reuters) - European shares gained in early deals on Wednesday, buoyed by strength in miners after Chinese growth slightly beat expectations, hinting at resilient demand in the world's largest metals consumer.

The STOXX Europe 600 Basic Resources index rose 0.6 percent, a top sectoral performer, after the world's second-largest economy posted quarterly growth of from a year earlier, just ahead of a median forecast of 7.4 percent in a Reuters poll.

The pan-European FTSEurofirst 300 rose 0.4 percent to 1,363.63, recouping the previous session's losses.

Global miner Rio Tinto rose 1.5 percent after it reported a sharp rise in iron ore output as it steps up shipments to Chinese steel mills.

Rio is a top pick for analysts at Citi, who wrote in a note to clients that recent Chinese economic data showed signs of a broad stabilisation.

Dutch chip toolmaker ASML, down 2 percent, and Swedish telecom Tele2, down 0.7 percent, both reported better-than-expected quarterly earnings but had a cautious tone for their full-year outlook statements. (Reporting by Alistair Smout; Editing by Lionel Laurent)