July 8, 2013 / 7:16 AM / 4 years ago

European shares bounce back on bargain-hunting

LONDON, July 8 (Reuters) - European shares rose on Monday, with investors finding value in beaten-down stocks after Friday’s drop, with chances of Greece getting its next aid payment and an improved political situation in Portugal boosting sentiment.

At 0707 GMT, the FTSEurofirst 300 was 0.7 percent higher at 1,171.68 points. The index of top European shares closed 1.3 percent lower on Friday after a stronger-than-expected U.S. jobs report raised concerns the U.S. Federal Reserve may soon start to scale down its stimulus programme.

Investors reacted positively to news that Portugal’s Prime Minister, Pedro Passos Coelho, reached a deal late last week with his junior coalition partner to end a rift that had threatened the country’s bailout programme, while Greece was close to securing its next tranche of aid.

“It would be good to see some positive developments related to Greece. And if the political situation in Portugal is also getting resolved, then more uncertainties are disappearing, which are good for the market,” Koen De Leus, senior economist at KBC, in Brussels, said.

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