European shares bounce back; Portugal underperforms

Last Updated: Mon, Apr 08, 2013 07:20 hrs

LONDON, April 8 (Reuters) - European shares clawed back some of the previous session's hefty losses on Monday, led by banks and miners, even though fresh concerns around the region's sovereign debt crisis are expected to crimp gains.

Portugal led index decliners, down 1.6 percent, after its constitutional court rejected some of the austerity measures introduced as a condition of the country's bailout.

The pan-European FTSEurofirst 300 index, which fell 1.6 percent on Friday, bounced back to rise 0.5 percent to 1,167.90 points. The euro zone's blue-chip Euro STOXX 50 index also advanced 0.5 percent to 2,597.01 points.

"Investors are picking up on a bit of bargain-hunting, but I would see the markets as sideways-to-slightly down this month. I would look to buy 'puts' and sell futures on any rallies," said Berkeley Futures associate director Richard Griffiths.

Griffiths said the German DAX equity index could fall 3 percent in April, while Clairinvest fund manager Ion-Marc Valahu said he also had a "short" position out to bet on further falls on the European equity markets.

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