* FTSEurofirst 300 up 0.5 percent
* Miners rally along with commodities
* Index on track for 9th monthly loss in last 10
By Jeremy Gaunt
LONDON, Aug 20 (Reuters) - European shares closed up on
Wednesday, lifted by commodity stocks, but recovering only a
fraction of their previous session's losses.
Analysts said sentiment may have been boosted by Wall
Street's rebound and a strong performance earlier in Asia.
The FTSEurofirst 300 <> index of top European shares
ended up 0.51 percent at 1,165.31 points.
The index had its worst loss in more than a month on
Tuesday, falling 2.5 percent.
"After losing 2-1/2 percent you may have a recovery of a
half a point," said Franz Wenzel, senior strategist at AXA
Investment Managers in Paris.
Mining stocks and heavyweight oils were the biggest
advancers, lifted by earlier strength in the oil market when oil
edged up above $115 a barrel. Crude <CLc1> was later down
sharply, closer to $113, after data showed a large U.S. supply
build.
The DJ Stoxx European basic resources index <.SXPP> rallied
4.1 percent. Rio Tinto <RIO.L> was up 7.4 percent and BHP
Billiton <BLT.L> 6.7 percent.
Oil explorer Tullow Oil <TLW.L> jumped 6.8 percent after UBS
raised its recommendation on the stock to "buy" from "neutral".
At the other end of the scale, fixed line telecoms and food
and drug retailers were the biggest losers.
Supermarket chain Carrefour <CARR.PA> closed down 3.1
percent.
Britain's FTSE 100 <> outperformed because of its miner
and energy element, gaining 0.97 percent. Germany's DAX <>
rose 0.6 percent and France's CAC <> was up 0.8 percent.
NINE OUT OF 10
European stocks are down some 22 percent this year, hit by a
toxic mix of slowing economies, bank losses and soaring oil
prices feeding into inflation worries.
They are on track for their ninth month of losses out of the
past 10.
Technology shares got a boost from Hewlett-Packard <HPQ.N>
results that beat estimates overnight and from a deal announced
by STMicroelectronics <STM.PA> and Ericsson <ERICb.ST> to
combine their chip and mobile applications businesses.
STMicro gained 2.4 percent and Ericsson rose 0.5 percent.
Earnings news lifted Telekom Austria <TELA.VI> and SBM
Offshore <SBMO.AS>.
SBM Offshore clocked up 2.1 percent after the Dutch oil
industry supplier beat expectations with its first-half
earnings.
Shares in Telekom Austria rose 3.3 percent as investors
shrugged off weaker-than-expected second-quarter results and
instead took solace in the group confirming its outlook.
French oil services group CGG Veritas <GEPH.PA> shares rose
7.7 percent as traders cited an upbeat Lehman Brothers note
published on Tuesday.
(Editing by Paul Bolding)
