European shares bounce from 1-week low as trade talks resume

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* STOXX 600 up 0.9 pct

* Miners rise as iron ore price hits record

* Italian banks rally on meeting ECB capital requirements

By Danilo Masoni

MILAN, Feb 11 (Reuters) - Gains in heavyweight miners andbanks helped European shares recover on Monday as investorsturned their focus to the start of a new round of trade talksbetween Beijing and Washington.

The pan-regional STOXX 600 .STOXX index rose 0.9 percentby 0931 GMT, having fallen to one-week lows on Friday amidworries over an economic slowdown and lack of progress in thetrade negotiations.

But as talks between the world's two largest economiesresumed on Monday, China struck an upbeat note. It did howeverexpress anger at a U.S. Navy mission through the disputed SouthChina Sea, casting a shadow over the prospect for improvedbilateral ties.

"Growth, China, trade, Brexit - the big themes that havebeen front of mind for months now remain very much in play thisweek," said Neil Wilson, analyst for

Among national benchmarks, Germany's trade-sensitive DAX .GDAXI index and London's FTSE 100 .FTSE both added 0.9percent, while France's CAC .FCHI gained 1.1 percent.

Europe's basic resources index .SXPP rose 1.3 percent,leading sectoral gainers, after Chinese iron ore prices hit arecord high on worries that supply from Brazil may fallfollowing the Vale dam collapse.

Shares in GlencoreGLEN.L , Rio Tinto RIO.L and BHP BHPB.L were up between 0.9 and 1.6 percent.

Banks were also strong, up 1.3 percent, with Italian lendersleading the way after Banco BPMBAMI.MI and UBI Banca UBI.MI and UniCreditCRDI.MI said their capital ratios met EuropeanCentral Bank standards. Their shares were up between 2.4 and 5.6percent.

Deutsche PostDPWGn.DE rose 2.1 percent on a report sayingthat Germany was set to grant the postal services firm ahigher-than-expected increase in postage for letters to accountfor fewer letters sent and higher costs.

Just EatJE.L rose 1.9 percent after its shareholder CatRock urged the British takeaway ordering website to start mergerdiscussions. Shares in rival Delivery HeroDHER.DE were down0.2 percent while Takeaway.comTKWY.AS rose 0.7 percent.

Among the few fallers was Smith & NephewSN.L , down 3.4percent, following a report it has held talks to buy U.S.medical equipment maker NuVasiveNUVA.O in a deal that wouldbe worth more than $3 billion. (Reporting by Danilo Mason; editing by John Stonestreet) ((; +39-02-66129734; Reuters; On Twitter

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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