* FTSEurofirst 300 closes 1.9 pct up after 3-day losing run
* Inditex boosted by strong results
* BP falls to 20-mth closing low on dividend concerns
By Brian Gorman
LONDON, June 9 (Reuters) - European shares rose on
Wednesday, snapping a three-day losing streak, after
better-than-expected Chinese export data boosted hopes for
global economic recovery.
The pan-European FTSEurofirst 300 <> index rose 1.9
percent to close at 998.44 points, having been as low as 978.84
earlier in the session. The index is still down more than 10
percent from a mid-April peak, on worries about Europe's debt
crisis.
"It's a relief rally. I think we're due a technical
recovery," said Giuseppe-Guido Amato, strategist at Lang &
Schwarz.
"Whether it's a one-day wonder we don't know. The only sure
thing is high volatility. Q1 earnings were good, and Q2 may be
good, but macro trumps micro now. The acceleration of the
recovery is fading. There is a chance of a double dip."
Banking stocks added most points to the index. Banco
Santander <SAN.MC>, Credit Suisse <CSGN.VX>, HSBC <HSBA.L>,
Societe Generale <SOGN.PA> and UniCredit <CRDI.MI> rose between
1.4 percent and 4.7 percent.
The sector was also given a boost after Citigroup analysts
said dividends from Europe's banks were set to rise 36 percent
this year.
European market sentiment was boosted after evidence of
stronger than expected Chinese exports in May, lessening fears
that Europe's debt crisis will slow global demand.
[]
The China data, as well as a weaker dollar, helped oil and
and metal prices gain, boosting commodity shares. Miners to rise
included Anglo American <AAL.L>, BHP Billiton <BLT.L>, Fresnillo
<FRES.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L>, up between 2.5
and 4.6 percent.
Among oils, Total <TOTF.PA>, Repsol <REP.MC> and
StatoilHydro <STL.OL> rose between 1.2 and 2.3 percent.
However, BP fell 4.3 percent to its lowest close since
October 2008 as traders cited concern over its dividend payment.
The company is coming under increasing pressure from U.S.
politicians following an oil spill in the Gulf of Mexico.
BP is down more than 40 percent from a mid-April peak,
wiping about 50 billion pounds ($72 billion) off its market
capitalisation.
Across Europe, the FTSE 100 <> index ended the day 1.2
percent higher; Germany's DAX <> and France's CAC 40
<> both gained 2 percent.
Spain's IBEX 35 <> rose 1 percent, Portugal's PSI 20
<> was 0.2 percent higher and Italy's benchmark <.FTMIB>
was up 1.1 percent.
Wall Street was higher around the time European bourses were
closing. The Dow Jones <>, S&P 500 <.SPX> and Nasdaq
Composite <> were up between 0.9 and 1.3 percent.
INDITEX RISES
Among individual companies, Zara fashion chain owner Inditex
<ITX.MC> soared 7.5 percent after the Spanish company posted a
forecast-beating 63 percent jump in quarterly net profit.
[]
However, mobile phone maker Nokia <NOK1V.HE> fell 2.3
percent as traders cited speculation the company could issue a
profit warning. []
Analysts say regulation is still a worry.
German Chancellor Angela Merkel and French President Nicolas
Sarkozy have urged European Commission President Jose Manuel
Barroso to consider an EU-wide ban on naked short selling of
shares and state bonds. []
(Editing by Mike Nesbit)
(brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters
Messaging: brian.gorman.thomsonreuters.com@reuters.net))
