European shares jump up as Sept. U.S. rate rise seen less likely

LONDON, Aug 27 (Reuters) - European shares rose on Thursday, buoyed by gains on Asian and U.S (Other OTC: UBGXF - news) . markets after a leading U.S. central bank official said the prospect of a September rate hike seemed "less compelling" than before.

The pan-European FTSEurofirst 300 index, which had fallen 1.9 percent on Wednesday, bounced back up by 2.5 percent. The euro zone's blue-chip Euro STOXX 50 index also advanced by 2.4 percent.

Bouygues (Other OTC: BOUYF - news) was one of the best performing stocks, rising 5.1 percent after the French conglomerate lifted the profit goal for its telecoms arm.

Persistent fears about an economic slowdown in China, which intensified after China devalued its yuan currency earlier in August, have rattled financial markets this month, causing the FTSEurofirst to slump 5.4 percent on Monday.

However, Wall Street racked up its biggest one-day gain in four years on Wednesday after New York Fed President William Dudley said the likelihood of a September rate hike "seems less compelling" than it was only weeks ago, in a sign that China's woes could affect U.S. monetary policy.

(Reporting by Sudip Kar-Gupta; Editing by Alistair Smout)