* FTSEurofirst 300 ends up 1.3 pct at 1,376.32 points
* Airbus falls as Qatar Airways seeks compensation
* BES rebounds after it hit record lows Tuesday
* Mining stocks buoyed by Chinese economic growth
By Sudip Kar-Gupta
LONDON, July 16 European equity markets
recovered on Wednesday from losses in the previous session as a
rebound in Banco Espirito Santo and in mining stocks
lifted the region's bourses.
The pan-European FTSEurofirst 300 index, which had
slipped 0.4 percent on Tuesday, closed up 1.3 percent at
1,376.32 points. The euro zone's blue-chip Euro STOXX 50 index
advanced 1.6 percent to 3,202.94 points.
Banco Espirito Santo (BES) rose nearly 20 percent, after
hitting record lows on Tuesday, enabling Lisbon's benchmark
PSI-20 index to advance by 3.1 percent.
Traders said that even though BES remained dogged by the
fact that a holding company of the bank's founding family had
failed to repay a $1 billion loan, some investors were now
starting to think the stock represented a relative bargain.
They added that BES was also benefiting from an extension to
a ban on short-selling on its shares - or betting on future
falls in a share price - and from expectations among investors
that it could raise more capital if necessary.
"It's a storm in a teacup. It's something that is specific
to Portugal, rather than having broader repercussions across the
euro zone," said Terry Torrison, managing director at
Monaco-based McLaren Securities.
AIRBUS DIPS LOWER
Shares in planemaker Airbus fell 2.5 percent, which
traders attributed to Qatar Airways' decision to seek
compensation from Airbus for delays in delivery of three of the
European planemaker's A380 superjumbos.
However, mining stocks rallied after Chinese economic growth
data slightly beat expectations, hinting at resilient demand in
the world's largest metals-consuming country.
The STOXX Europe 600 Basic Resources Index - which
houses mining companies - rose 2.8 percent, beating a 1.3
percent rise on the broader, pan-European STOXX 600 index
China, the world's second-largest economy, grew 7.5 percent
in April-June from a year earlier, the statistics bureau said on
Wednesday, just ahead of a median forecast of 7.4 percent in a
"There's a close correlation between Chinese industrial
production and the mining sector, so this pick-up is
encouraging," said Coutts global equity strategist James
The FTSEurofirst 300 is still up around 3 percent since the
start of 2014, while the Euro STOXX 50 is up around 2 percent.
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up
(Additional reporting by Andrei Khalip and Alistair Smout;
Editing by Mark Heinrich)