* FTSEurofirst 300 up 0.1 pct, Euro STOXX 50 up 0.3 pct
* China data helps stocks sustain rally after U.S. jobs beat
By Francesco Canepa
LONDON, Dec 9 European shares steadied on
Monday, consolidating gains from the previous session as Chinese
export data encouraged investors to anticipate stronger global
China's exports handily beat forecasts in November and an
unexpected drop in consumer inflation eased fears of any
imminent policy tightening, helping to sustain a rally in global
shares which had been fuelled by estimate-beating jobs data from
the United States on Friday.
"This is the first synchronised global recovery since 2010,"
said Nigel Bolton, head of European equities at the BlackRock
"We do believe equity markets can continue to rise further
into 2014 (although) I suspect it would be at a slower pace than
The pan-European FTSEurofirst 300 was up 0.1
percent at 1,271.90 points and the euro zone Euro STOXX 50
was up 0.3 percent at 2,987.29 points at 1608 GMT.
Spanish infrastructure company Ferrovial rose 3.5
percent to the top of the FTSEurofirst 300, extending gains
after saying its British subsidiary Amey had won a five-year,
130-million-pound ($213 million) contract to maintain 10,000
kilometres (6,200 miles) of roads in Britain.
Shares in Tullow Oil bucked the trend, falling 3.4
percent to the bottom of the FTSEurofirst 300, after the
explorer said the Tultule well it drilled in Ethiopia had failed
to find oil.
The broader STOXX Europe 600 has rallied 12.5
percent this year despite falling profits estimates, leaving it
trading at 13.5 times its expected earnings for the next 12
months, against its 10-year average of 12 times, Thomson Reuters
"The bigger danger in my mind is that the economy just does
not recover to the extent that we are anticipating," said
BlackRock's Bolton, who expected European earnings per share to
rise around 10 percent next year.
"If we don't get that, there's a reasonable amount priced
into the market for earnings growth next year ... so you'll
probably see the market will have to correct."
Curbing market gains were lingering concerns that stronger
economic data will encourage the United States to advance a cut
to its asset purchase programme, which has driven money out of
cash and safer bonds into higher-yielding stocks.
A Reuters poll conducted after the U.S. payrolls data were
released showed more U.S. primary dealers expect the Fed to
start to taper its purchases in March, or sooner.
Uncertainty over when the process will begin and what it
might mean for equities are likely to keep a lid on markets into
year's end, even though Friday's data suggested the economy was
recovering well enough to cope with a Fed move.
"Against the backdrop of decent growth, strong unemployment,
it's not such a bad thing," said Mouhammed Choukeir, chief
investment officer at Kleinwort Benson, reiterating his positive
stance on European equities.