European shares up on fresh Spain aid expectations - Reuters

PARIS | Mon Oct 22, 2012 4:59am EDT

PARIS Oct 22 (Reuters) - European stocks pared early losses and turned slightly positive on Monday, as renewed expectations that Spain was moving closer to seeking a bailout eclipsed worries over corporate results.

While Spanish debt was little moved, the euro rose and euro zone banking stocks led sectoral gainers, up 1 percent.

At 0849 GMT, the FTSEurofirst 300 index of top European shares was up 0.2 percent at 1,114.09 points.

Spain Prime Minister Mariano Rajoy clinched election victory in his home region of Galicia on Sunday in a result seen as supportive for his austerity drive and paving the way for a formal bailout request.

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