STOCKS NEWS EUROPE-JPMorgan switches into beaten-down miners from autos

A JPMorgan rating upgrade helps make miners the best performers across Europe, with the investment bank funding a shift into the beaten-down sector with autos which have seen strong share price gains.

JPMorgan lifts its rating on the miners to "overweight" from "underweight", viewing Rio Tinto (Xetra: 855018 - news) and BHP as the most attractive stocks in the sector.

The pair climb 3.1 percent and 2.1 percent respectively, while the sector as a whole firms 2 percent.

"We believe the risk-reward for miners is improving... We are taking funds from autos, moving them from OW ('overweight') to N ('neutral'). The sector valuations do not look as attractive any more due to exceptional past performance," JPMorgan writes in a note.

In the last 12 months, miners have risen about 5 percent, contrasting with a near 40 percent gain from autos, and a more than 10 percent rise on the broader STOXX Europe 600 index.

JPMorgan highlights that the mining sector is delivering on cost cutting, and that there are signs of a rebound in activity in top metals consumer China, with the country having recently issued robust trade data.

Economic trends point to such strength continuing. The Chinese Citi Economic Surprise Index (CESI), which captures how well China's economic data is matching expectations, is at historical lows, "and likely to rebound", JPMorgan says.

The autos sector inches up 0.2 percent by 0947 GMT, against a 0.3 percent rise from the STOXX Europe 600.

Reuters messaging rm://tricia.wright1.thomsonreuters.com@reuters.net