European shares rebound on China data, DNB gains

Reuters

LONDON, Oct 24 (Reuters) - European shares bounced backtowards five-year highs in early trading on Thursday, with asurvey showing a pick-up in manufacturing activity in Chinacheering investors.

European miners gained 0.6 percent to feature amongthe top gainers after the flash Markit/HSBC Purchasing ManagersIndex for China, the world's top metals consumer, rose to aseven-month high of 50.9 in October, above September's finalreading of 50.2.

At 0702 GMT, the pan-European FTSEurofirst 300 index was up 0.2 percent at 1,283.05 points, moving backtowards this week's five-year highs after falling 0.6 percent inthe previous session.

After positive China manufacturing data, investors' focuswill shift to German flash manufacturing PMI at 0728 GMT, whichis expected to rise to 51.5 in October from 51.1 in the previousmonth. The euro zone's PMI numbers, due at 0758 GMT, are seen upto 51.4 this month from 51.1.

Norway's largest bank DNB, up 4 percent, was thetop gainer on the FTSEurofirst 300 index, after reporting higherthan expected net profits for the third quarter

Ericsson fell 5.6 percent, the top decliner,after the mobile telecom gear maker posted third-quarteroperating profit below expectations and said sales were underpressure.

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