European shares snap losing streak; TUI Travel up

                                
 * FTSEurofirst 300 index gains 0.5 percent
                                
 * TUI Travel gains after bookings rise
                                
 * Tesco rises after results beats forecasts
                                
 * For up-to-the minute market news, click on [STXNEWS/EU]
By Joanne Frearson
                                
 LONDON, Oct 5 (Reuters) - European shares regained ground on
Tuesday after making their longest losing streak since January
2009, as sentiment about the global recovery improved, while TUI
Travel <TT.L> jumped after bookings rose.
                                
 Investor confidence was given a boost after British
private-sector services activity growth rose unexpectedly in
September, while hopes that central banks will continue to take
action to help a fragile recovery also supported.
[ID:nLDE693102]
                                
 The Bank of Japan said it may increase the size of a fund
pool set aside for asset buying after it effectively cut
interest rates to zero.
                                
 Separately Federal Reserve Chairman Ben Bernanke said on
Monday further asset purchases could help ease financial
conditions. [ID:nN04133934] [ID:nN04133934]
                                
 By 0914 GMT, the pan-European FTSEurofirst 300 <.FTEU3>
index of top shares was 0.5 percent higher at 1,055.91 points
after falling for the previous six sessions.
                                
 "It's a modest bounce after a poor day yesterday," Peter
Dixon, economist at Commerzbank, said. "But, we are in a range
trading environment and investors are still looking at what
happens in the economy and how earnings will be."
                                
 Travel stocks featured among the best performers. Europe's
largest travel firm TUI Travel <TT.L> gained 4.2 percent after
the company said booking numbers are growing and that it expects
to reduce its debt position over the coming months.
                                
 Retailers were in demand. Tesco <TSCO.L>, the world's
third-biggest retailer, rose 1.3 percent after it beat forecasts
with a 14 percent gain in first-half underlying profits.
[ID:nLDE6930F0]

                                
 K+S GAINS
                                
 German potash miner K+S <SDFG.DE> rose 0.5 percent after
rival Mosaic <MOS.N> reported quarterly profit nearly tripled as
demand for its fertilizers surged.
                                
 On the downside, British satellites company Inmarsat <ISA.L>
fell 3.5 percent after U.S. hedge fund Harbinger Capital
Partners said it sold a 14.1 percent stake in the company at 630
pence a share.
                                
 Kazakhmys <KAZ.L> slipped 1.1 percent after it said its
chairman Vladimir Kim has sold nearly a third of his stake in
the company to diversify his investments ahead of a possible
secondary listing of the Kazakh copper producer next year in
Hong Kong.
                                
 The Euro STOXX 50 <.STOXX50E>, the euro zone's blue-chip
index, however, faced some resistance. The index was 0.7 percent
higher at 2,718.79 points, still below the 50 percent Fibonacci
retracement of the index's fall from an April high to a May low
at 2,737.62 points.
                                
 "Investors are still nervous ahead of the earnings season
and Friday's U.S. non-farm payrolls," said Henk Potts,
strategist at Barclays Wealth.
                                
 Later in the week, investors' will focus on U.S. nonfarm
payrolls on Friday, and interest rate decisions from the Bank of
England and the European Central Bank on Thursday.
                                
 Across Europe, the FTSE 100 <.FTSE> index was 0.6 percent
higher, Germany's DAX <.GDAXI> was up 0.3 percent and France's
CAC 40 <.FCHI> gained 0.8 percent.
 (Reporting by Joanne Frearson; Editing by Louise Heavens)