* FTSEurofirst 300 rises 0.7 pct
* Miners gain most on China stimulus talk
* easyJet gains after upgrading first half outlook
By Atul Prakash
LONDON, March 25 European shares advanced in
cautious trading on Tuesday on expectations that recent
disappointing data from China might prompt the country to launch
new stimulus measures to maintain the pace of economic growth.
Encouraging updates from companies such as Europe's largest
home improvements retailer Kingfisher and British budget
airline easyJet also improved market sentiment.
The biggest sectoral gainers were basic resources stocks
, which rose 1.3 percent, with analysts saying that any
monetary easing by the world's No. 1 metals consumer would
support metal prices as well as improving mining sector profits.
"The stimulus talk is around and could certainly help
markets to recover. If we see any relaxation on the monetary
front, then this could mean that we see some relief in the
commodity space," Gerhard Schwarz, head of equity strategy at
Baader Bank, said.
"We saw cyclical sectors underperforming over the last
couple of weeks and any kind of stimulus will certainly help the
cyclical sectors more."
Global diversified miners Rio Tinto and BHP Billiton
rose 2.1 percent and 1.6 percent respectively, while
Anglo American rose 1.9 percent.
Miners helped the FTSEurofirst 300 index of top
European shares to gain 0.7 percent to 1,302.68 points by 0840
GMT after falling more than 1 percent in the previous session.
However, investors stayed cautious in trading as
geopolitical tension between Russia and the West persisted.
U.S. President Barack Obama and major industrialised allies
warned Russia on Monday it faced damaging economic sanctions if
President Vladimir Putin takes further action to destabilise
Ukraine following the seizure of Crimea.
A survey showed on Tuesday German business morale fell for
the first time in five months in March as companies in Europe's
largest economy worry about the effects of the Ukraine
Among individual movers, easyJet rose 4.5 percent to
be the top gainer in the FTSEurofirst, after upgrading its
first-half outlook by 25 percent due to tight cost control and
the popularity of its allocated seating programme.
And Kingfisher was up 3.2 percent after saying it
will return about 200 million pounds to shareholders this year
after meeting forecasts with a 4.1 percent rise in 2013-14
Europe bourses in 2014: link.reuters.com/pad95v
Asset performance in 2014: link.reuters.com/rav46v
Today's European research round-up
(Editing by Louise Ireland)