* FTSEurofirst 300 up 0.3 pct; snaps 3 sessions of losses
* Miners recoup some losses from previous week; metals gain
* Worries over euro zone debt crisis persist
By Harpreet Bhal
LONDON, May 24 (Reuters) - European shares rose on Monday,
with miners recouping losses from the previous week on a strong
demand outlook for metals, but gains were limited by worries
that the euro zone's debt crisis could hamper the bloc's growth.
The pan-European FTSEurofirst 300 <> index of top
shares closed up 0.3 percent at 973.21 points, snapping three
straight sessions of losses which caused an 8 percent drop in
the index.
Miners Anglo American <AAL.L>, Kazakhmys <KAZ.L>, BHP
Billiton <BLT.L> and Rio Tinto <RIO.L> added 0.7 to 2 percent,
on a bright outlook for the demand for metals following comments
by an official that China should be particularly cautious in
introducing new tightening measures. []
Spanish banks fell after the Bank of Spain on Saturday took
over the running of CajaSur following the failure of its planned
merger with another regional lender, signalling structural
problems facing fiscally fragile euro zone states and pressuring
the euro. []
"It (the bailout in Spain) sends a very clear and present
warning to the market that the debt crisis could have a
particularly negative effect on some of the banks that are
directly exposed to sovereign debt," said Joshua Raymond,
strategist at City Index.
Banco Santander <SAN.MC> and BBVA <BBVA.MC> were off 1.2 and
2 percent respectively.
"Trading has been choppy... which represents how much
uncertainty there remains in the market and just how fragile
confidence is so far," Raymond said.
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Latest wrapup on the euro zone debt crisis:
Graphic on the euro zone debt: http://link.reuters.com/fyw72j
For related news stories:
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Defensive tobacco and beverage stocks, which are deemed to
be resilient in tough economic conditions, also rose as risk
aversion crept up.
SABMiller <SAB.L>, Heineken <HEIN.AS> and Anheuser-Busch
InBev <ABI.BR> rose 1.3 to 2.5 percent, while British American
Tobacco <BATS.L> and Imperial Tobacco <IMT.L> added 0.8 and 2.1
percent respectively.
HOME SALES JUMP
On the economic front, investors drew some support from an
unexpected jump in the sales of previously owned U.S. homes in
April to a five-month high as buyers rushed to close contracts
before the expiry of a homebuyer tax credit. []
The market closely watched details of spending cuts in
Britain, as the finance minister George Osborne detailed 6.2
billion pounds ($8.92 billion) in belt-tightening measures and
warned much worse lay ahead in an emergency budget next month.
[]
Among other fallers, BP <BP.L> shed 2.7 percent. The oil
major is facing growing pressure from the U.S. government to
resolve an spill in the Gulf of Mexico, and said it had a 60-70
percent chance of success in plans this week to shut off its
blown well. []
Across Europe, Britain's FTSE 100 <> rose 0.1 percent,
Germany's DAX <> fell 0.4 percent and France's CAC 40
<> closed flat.
Markets in Austria, Switzerland, Greece, Denmark and Norway
were closed on Monday for a public holiday.
($1=.6951 Pound)
(Editing by Jon Loades-Carter)
