UPDATE 1-China stimulus hopes, chip stocks push European shares higher
* FTSE trading starts after technical problem delays open
* Chip stocks gain after solid results from U.S.counterparts
* China hints that it plans to boost economic growth (For a live blog on European stocks, type LIVE/ in an Eikonnews window)
Aug 16 (Reuters) - European shares churned higher on Friday,boosted by positive investor sentiment after China hinted ofplans to spur economic growth while chipmaker stocks in theregion propped up markets, helped by solid earnings news fromU.S. counterparts.
China's state planner said it will roll out a plan to boostdisposable income this year and in 2020 to encourage consumptionas the economy slows. urn:newsml:reuters.com:*:nP8N1YN01S
The pan-European STOXX 600 index .STOXX was 1.1% higher by0859 GMT, with the export-reliant DAX index .GDAXI outperforming.
Markets were jarred earlier after London's FTSE 100 .FTSE had a delayed open due to a technical glitch. But the indexclimbed 0.7% higher, boosted by financials. urn:newsml:reuters.com:*:nL8N25C17Q
European shares staged a comeback from six-month lows hitduring the previous session, after China warned of retaliationagainst U.S. tariffs, heightening fears of the continued impactof their trade war on global growth.
However, the benchmark index was still on pace to log athird straight week of losses as worries of a global recessionkept investors on edge, largely because of the trade drama.
"The real kind of fear that markets were feeling seems tohave somewhat disappeared, but if you look at how much groundhas been lost in the last couple of days, it's very much down inthe week," CMC Markets analyst David Madden said.
Central banks from major economies around the worldincluding Australia, New Zealand and India have cut borrowingcosts to spur economic growth with market participants expectingthe European Central Bank to step in line with them.
Leading the charge on the STOXX 600 was a rally insemiconductor companies, which pushed the technology sector .SX8P up 1.4% - with AMS AMS.S , Infineon TechIFXGn.DE andSTMicroelectronics STM.MI making substantial gains.
Better-than-expected results from gaming chip maker NvidiaNVDA.O and chip gear maker Applied MaterialsAMAT.O overnight reinforced the rally.
Italy's blue-chip index .FTMIB rose 1.2%, catching up withits peers after a midweek holiday on Thursday.
Specialty chemicals company IMCDIMCD.AS slumped 18% tothe bottom of the STOXX 600, after it reportedweaker-than-expected organic sales in the second quarter. urn:newsml:reuters.com:*:nL8N25C1CO
(Reporting by Shreyashi Sanyal & Agamoni Ghosh in Bengaluru;Editing by Bernard Orr) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780))