* FTSEurofirst 300 rises 1.5 pct to 1,130.37
* Index bounces from deep in oversold territory
* Carnival up as CEO departs
* Oil services fall after Petrofac upate
By David Brett
LONDON, June 25 (Reuters) - Soothing words from central
bankers in China and the United States calmed investors on
Tuesday and contributed to European shares bouncing off
The FTSEurofirst 300 closed up 16.18 points, or 1.5
percent at 1,130.37, having closed at its lowest since late
November 2012 in the previous session spooked by liquidity
worries after the Federal Reserve said it would begin stimulus
withdrawal in the U.S later this year and credit tightening in
"The pullback has been healthy. You could argue that it has
cleared out some of the more speculative (risky) positions,"
Philip Poole, global head of macro investment strategy, said.
"One of the problems with QE is that it is meant to
stimulate the real economy but a lot of the liquidity pumped in
was sitting in the financial sector ... creating the possibility
of assets bubbles building and central bankers were concerned
about that," he said.
Helping calm the storm that has seen European shares fall as
much as 11.4 percent May 23, China's central bank said that it
would guide rates to reasonable levels and two U.S. Federal
Reserve officials downplayed the notion of an imminent end to
The FTSEurofirst 300 promptly rebounded off large oversold
levels, according to its 14-day relative strength index,
although the index faces resistance on the upside around 1,145.
The rally was broad-based with every sector in positive
territory except utilities, which were only marginally lower.
Dominic Hawker, technical analyst at Messels said among
Europe's indexes Germany's DAX looks most constructive
in terms of upward trend support, while Britain's FTSE 100
has good upward support stretching back to March 2012.
Technicals helped lift some of the biggest risers on the
index too. Chip designer ARM Holdings rallied 3.6
percent, having dropped around 30 percent since its May peak,
boosted by Investec Securities' upgrade to "buy" from "hold".
"We see ARM as the most attractive long-term investment in
the sector with underpinned earnings growth. Negative sentiment,
but strong fundamentals create an attractive entry point in our
view," Investec says in a note.
Credit data company Experian rose 4 percent
bouncing off the upward trend line from the 2011 lows passing
through the December 2012 trough and back above the 200 day
moving average ahead of results later in July.
Cruise operator Carnival Corp rallied 5.3 percent as
investors cheered the departure of Chief Executive Micky Arison
in hope of a swift turnaround, as the company continues to
struggle with a series of mishaps that have hurt bookings.
Oil services firms were among the top fallers. Petrofac
shed 1.2 percent after its latest update failed to lift
the gloom shrouding the sector brought on by peer Saipem's
recent profit warnings.
A profit warning saw can maker Rexam shed 2.7