* Live markets: cpurl://apps.cp./cms/?pageId=livemarkets
* Pan-European STOXX index up 0.1 percent
* Miners underpin market, set to gain 60 pct in 2016
* Mid-caps Bovis slumps after profit warning
* Italian banks Banco Popolare, Pop Milano under pressure
By Danilo Masoni
MILAN, Dec 28 European shares inched up in quiet
festive trade on Wednesday with stronger mining stocks
underpinning the broader market while British house-builder
Bovis Homes slumped on a profit warning.
The STOXX Europe 600 was up 0.1 percent, while
Britain's FTSE, which reopened on Wednesday after a
Christmas break, outperformed with a gain of 0.3 percent thanks
to its heavy exposure to mining stocks.
The Basic Resources STOXX index led sectoral gainers
with a rise of 2.5 percent on the back of firmer metal prices.
The index is on track to end the year with a rise of 61 percent,
helped by a recovery in commodity prices, better balance sheets
and expectations of fiscal stimulus in the United States.
Miners BHP Billiton, Anglo American rose 4.2
and 3.2 percent respectively. Precious metal minders Fresnillo
and Centamin were also in demand as gold prices
extended gains thanks to technical reasons.
"The yellow metal is in demand and could be set for a
successful test above the $1150 resistance," said London Capital
Group analyst Ipek Ozkardeskaya in a note.
Top STOXX losers were merger partners Banco Popolare
and Banca Popolare di Milano. The two
Italian lenders were both down 2.7 percent. One Milan-based
trader said the stocks were hit by concerns over bad loans
Spanish airport operator Aena fell 1.4 percent
after online newspaper El Confidencial reported the company
would be forced to cut tariffs it applies to airlines by 2
percent a year in 2017-2021.
Outside the STOXX , Bovis fell 4.2 percent after
saying it would not deliver the number of houses it originally
expected in 2016, resulting in a likely miss against market
In spite of the drop, which made Bovis the worst performer
on Britain's midcap index, analyst at Numis kept their
buy rating saying they expected the company to be better placed
to deliver next year.
Apart from miners, price moves in other sectoral indexes
were small - between a gain and a fall of 0.5 percent - in muted
holiday season activity.
Turnover on the STOXX index dropped to 8.3 billion euros on
Tuesday compared to an average of 26.7 billion euros over the
last month. The pan-European index is set to end the year with a
fall of 1.5 percent.
(Reporting by Danilo Masoni; editing by John Stonestreet and