LONDON, Feb 25 (Reuters) - European shares cautiously
continued their recovery from multi-month lows early on Monday
as investors kept a close eye on elections in Italy, the outcome
of which could impact economic reform.
By 0803 GMT, the FTSEurofirst 300 was up 1.97
points, or 0.2 percent at 1,167.55, in tandem with overnight
gains in Asia and a bullish finish in the U.S. on Friday.
The euro zone blue chip index climbed 1 percent
to around 2,656 points, extending its bounce off near
three-month lows hit last Thursday.
Achim Matzke, European stock indexes analyst at Commerzbank,
said he sees euro zone blue chips stocks holding in a tight
range until the outcome of the election in Italy is known.
"We have support around 2,580 and resistance around 2,675
and I expect the market to trade inside that range awaiting the
results out of the elections Italy," he said.
The outcome of the elections in Italy remained one of the
most unpredictable in years as polls opened for the second day
of voting on Monday, with a surge in protest votes fuelling
fears of an unclear outcome that could hamper economic reform.