* FTSEurofirst 300 up 1 pct, adds to 7.3 pct gain in 2010
* Porsche soars 15 pct after winning court case
* For up-to-the-minute market news, click on []
By Blaise Robinson
PARIS, Jan 3 (Reuters) - European stocks ended higher on
Monday, starting the new year with a broad-based rally led by
construction and industrial shares as softer-than-expected
factory inflation data from China eased concerns of a
tightening in monetary policy.
Automakers <.SXAP> also made lofty gains, boosted by German
luxury car maker Porsche's <PSHG_p.DE> 15 percent jump after a
U.S. federal judge dismissed a lawsuit by hedge fund groups
accusing the company of cornering the market in shares of
Volkswagen AG <VOWG_p.DE>. []
The FTSEurofirst 300 <> index of top European shares
closed 1 percent higher at 1,132.30 points, following a 7.3
percent gain in 2010.
Trading was muted on Monday, however, as UK markets
remained closed for a holiday. The volume on the FTSEurofirst
300 was only 55 percent of the index's 90-day average daily
volume.
U.S. economic data also lifted the mood, with factory and
housing data pointing to a strengthening recovery, though some
saw clouds overhanging the market.
"Despite the fact that the macro landscape is relatively
positive, the stock rally remains fragile and dominated by one
theme: the exposure to emerging growth," said Jacques Henry,
analyst at Louis Capital Markets in Paris.
"Skittish investors continue to fret about the fate of
debt-ridden economies in the euro zone," he added, noting the
rise again of credit-default swaps of Greece and Ireland.
German conglomerate Siemens <SIEGn.DE> gained 1.4 percent,
and French cement maker Lafarge <LAFP.PA> rose 2.4 percent.
Auto shares gained ground, helped by Porsche's surge as
well as by South Korean carmakers' prediction of rising 2011
sales on U.S. and China growth. [] []
Volkswagen shares rose 5.1 percent, BMW <BMWG.DE> added 4.4
percent and PSA Peugeot Citroen <PEUP.PA> gained 3.4 percent.
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Graphic on 2010 asset performance:
http://r.reuters.com/veq33r
Factbox on banks' economic outlooks []
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European stocks ended 2010 with a brisk December rally,
propelled by expectations of strong growth in emerging markets
as well as a brighter economic outlook in the United States
after further stimulus measures.
But the Christmas rally stalled last week after China's
surprise interest rate hike --the second in just over two
months-- fuelled fears of further monetary tightening as
Chinese authorities stepped up their battle to rein in
stubbornly high inflation.
Weekend data, however, showed China's factory inflation
cooled in December as manufacturers expanded more slowly after
a strong run in growth. []
Across Europe, Germany's DAX <>, which gained 16
percent in 2010, rose 1.1 percent on Monday, while France's CAC
40 <> added 2.5 percent, following a 3.3 percent fall last
year.
French media group Lagardere <LAGA.PA> rose 9.4 percent to
a 14-month high after revealing it has entered exclusive
negotiations with privately held Hearst Corp to sell its
international magazines and press business.
"The valuation level mentioned confirms the high figures
which were circulating at the start of December and should be
welcomed by the market," said CM-CIC Securities analyst Eric
Ravary.
Nokia <NOK1V.HE> gained 3.6 percent after a research group
forecast brisk sales of its flagship N8 handset, which the
cellphone maker hopes will help it claw back its market share
in the lucrative smartphone sector.
(Reporting by Blaise Robinson; Editing by Leslie Adler)
