LONDON, April 16 European shares advanced on
Wednesday to bounce back from the previous session's losses
after China reported economic growth a touch above forecasts,
while a rise in retailer Tesco also lifted markets.
The pan-European FTSEurofirst 300 index, which
progressed by 16 percent last year and hit a near six-year high
of 1,355.29 points earlier this month, was up by 0.9 percent at
1,319.08 points in early session trading.
The euro zone's blue-chip Euro STOXX 50 index
also rose 1 percent, to 3,122.50 points.
China's economy grew at its slowest pace in 18 months in the
first quarter of 2014, official data showed on Wednesday, with
signs of waning momentum already prompting limited government
action to steady the world's second-largest economy.
However, the Chinese data, which showed 7.4 percent growth,
came in slightly stronger than the median forecast of 7.3
percent in a Reuters poll although it showed a slowdown from
growth of 7.7 percent in the final quarter of 2013.
A 4 percent rise in Tesco gave one of the biggest lifts to
the FTSEurofirst 300 index, as some traders said Tesco's fall in
profits was not as steep as some had feared.
"Tesco this morning was not quite as bad as expected," said
Berkeley Futures associate director Richard Griffiths.
"The Chinese slowdown was not too bad either, which is good
news, but I would still be tempted to sell any market rally from
these sorts of levels," added Griffiths.
(Reporting by Sudip Kar-Gupta; editing by Blaise Robinson)