* STOXX up 0.3 pct; shares hit one-month high
* Oil stocks reverse gains on crude slump
* China-sensitive autos led fallers
(Updating prices, adding comment)
By Julien Ponthus and Josephine Mason
LONDON, Jan 11 (Reuters) - European shares closed higher on Friday
after hitting one-month highs as investor appetite for assets
considered risky remained firm, despite caution over trade and ahead
of earnings season.
The pan-European STOXX 600 ended 0.1 percent higher on its
fourth straight day in the black -- its longest winning streak since November.
But Frankfurt, Paris and London all ended in negative territory as
enthusiasm over China's trade talks with the United States waned
without hard evidence about what was agreed.
Worries about slowing economic growth in China also lingered while
Wall Street's gains from a rally on Thursday faltered as Q4 results
season kicks off in earnest next week.
"The lack of additional detail in relation to the update (on
U.S.-China trade talks) has encouraged some dealers to trim their
positions ahead of the weekend," said David Madden, market
analyst at CMC Markets UK.
China-sensitive autos and parts suppliers led the falls, down 1
percent. Valeo dropped 6.4 percent, the biggest faller on the CAC
40, while Continental and Volkswagen were among the biggest DAX decliners.
Still in the first full trading week of 2019, the STOXX 600 gained
1.7 percent as investors regained their appetite for risk boosted by
dovish comments from Federal Reserve chairman Jerome Powell.
Equity funds drew inflows of $6.2 billion, the biggest in 11
weeks, BAML said.
The FTSE 100 erased earlier gains as sterling bounced amid
growing expectations that the government may delay its departure from
the European Union beyond March 29.
Focus remained on Prime Minister Theresa May's efforts to get her
Brexit deal through parliament, with a crucial vote due on Tuesday. A
drastic about-turn in crude prices also weighed on heavyweight oil
In the healthcare sector, downgrades by Jefferies hit UDG
Healthcare and Orion Oyj which were the worst individual
performers with falls of 7.7 percent 7.4 percent respectively.
French utilities took a hit after Societe Generale downgraded
ratings on Suez and Veolia Environnement
, citing doubts about the global growth outlook.
The stocks were down 2.8 percent and 2.6 percent respectively.
The UK's housebuilders were stand-out gainers on the day after
BAML upgraded its view on the sector, saying "it seems at least
possible, or even probably, that some sort of Brexit resolution is
within sight and therefore the UK housebuilding sector may see some relief".
Taylor Wimpey and Persimmon were leading British blue chips,
both rising more than 4 percent.
(Reporting by Julien Ponthus and Josephine Mason; Editing by Andrew
Heavens and Mark Potter)
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