LONDON, March 20 (Reuters) - European shares snapped a three-day losing streak on Wednesday as investors bought back battered stocks, betting that the Cypriot debt crisis would eventually be resolved.
Traders said the limited size of Cyprus's cash requirements meant it was likely a compromise with international lenders would be found, although they cautioned that equity markets would probably remain volatile.
The European Central Bank said after the vote it remained committed to providing liquidity within certain limits, helping backstop sentiment.
"I'm certainly buying on the dips but not brave enough yet to try and buy the banks," Ed Woolfitt, head of trading at Galvan, said.
"Whilst it is all semi optimistic over Cyprus until it is resolved the banks could still get squeezed, and with so much more quality stocks being dragged down there's no need to go looking for trouble right now."
The pan-European FTSEurofirst 300 index was up 0.4 percent at 1,200.21 points.