* FTSEurofirst 300 ends 1 pct higher after 6-week lows
* Encouraging European, U.S. data supports shares
* Automakers, miners feature among top gainers
* Bank of Ireland extends this week's slump to 44.5 pct
By Atul Prakash
LONDON, Nov 24 (Reuters) - European shares bounced back from
six-week lows on Wednesday as encouraging economic data boosted
appetite for riskier assets, although worries about debt levels
in peripheral euro zone countries kept investors jittery.
The FTSEurofirst 300 <> index of top European shares
closed 1 percent higher at 1,087.67 points. On Tuesday it fell
1.5 percent and hit a six-week low 1,074.06. The index has
gained 4 percent in 2010, against a 26 percent jump in 2009.
Automakers led the gainers list, with the STOXX Europe 600
Automobiles & Parts <.SXAP> index surging 3.8 percent on hopes
of global economic recovery. Porsche SE <PSHG_p.DE> rose 6.3
percent, while Daimler AG <DAIGn.DE> advanced 5.1 percent.
The equity market was supported by positive data that showed
German business sentiment rose in November to its strongest
since 1991, new U.S. claims for unemployment benefits last week
dropped to their lowest in more than two years, and U.S.
consumer spending rose in October. []
[]
"This combination of good data from across the globe has
been welcomed by equity investors who've suffered a terrible
bout of the blues since the Ireland debacle unfolded a few weeks
ago," Angus Campbell, head of sales at Capital Spreads, said.
Ireland unveiled a 15 billion euro ($20 billion) four-year
austerity plan, imposing deep spending cuts and tax increases to
meet the terms of an EU/IMF bailout. []
Appetite for risky assets rose, with the VDAX-NEW volatility
index <.V1XI> falling 7.4 percent. The lower the index, which is
based on sell and buy options on Frankfurt's top-30 stocks
<0#.GDAXI>, the higher the market's desire to take risk.
Miners got strength from higher metals prices, which gained
on supply concerns and hopes of a rise in demand following good
economic numbers.
The STOXX Europe 600 Basic Resources index <.SXPP> rose 2
percent, while Antofagasta <ANTO.L> gained 4.3 percent and
Xstrata <XTA.L> rose 4.2 percent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
TAKE A LOOK- Europe's debt problems []
BREAKINGVIEWS-Irish bank restructuring []
Euro zone debt struggle graphic http://link.reuters.com/dah65q
Multimedia on euro zone crisis http://r.reuters.com/hus75h
EU bailout graphic http://link.reuters.com/fac76q
Euro zone debt graphic http://r.reuters.com/hyb65p
Interactive timeline http://link.reuters.com/nyx95q
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CAUTIOUS APPROACH
But some analysts advised caution and pointed to other
economic numbers that showed a surprise drop in new U.S. home
sales last month. They said that data was a reminder growth
would remain sluggish.
Tensions in the Korean peninsula and concerns of contagion
from Ireland's debt crisis also prompted caution.
"It's possible that we will continue to have volatility
without too much movement into the end of the year. The next
year will be challenging as [] problems are
still there," Philippe Gijsels, head of research at BNP Paribas
Fortis Global Markets in Brussels, said.
Banking shares were generally higher, but Bank of Ireland
<BKIR.I> slumped 11 percent, BNP Paribas <BNPP.PA> was down 0.4
percent and Natixis <CNAT.PA> slipped 1.2 percent. Bank of
Ireland is now down 44.5 percent this week.
British company Compass <CPG.L> gained 7.3 percent after
full-year profit beat forecasts and the world's biggest contract
caterer raised its dividend.
Across Europe, the FTSE 100 <>, Germany's DAX <>
and France's CAC 40 <> rose 0.6 to 1.8 percent. The Thomson
Reuters Peripheral Eurozone Countries Index <.TRXFLDPIPU> was up
0.1 percent.
(Editing by David Hulmes)
