STOCKS NEWS EUROPE-Resources sector gets steelmaker fillip

Europe's basic resources sector continues its new year renaissance after a postive outlook from the region's steelmaking powerhouse ArcelorMittal (Other OTC: AMSYF - news) attracts buyers in bulk.

Up 1.1 percent and leading sectoral gainers across the region, the STOXX Europe 600 Basic Resources (Frankfurt: W8Z.F - news) index suffered a steep 13.3 percent fall in 2013 but is currently the third-best performing sector in the year to date.

After several years in the doldrums, Dutch-listed ArcelorMittal (Other OTC: ARCXF - news) says growth in Europe has finally bottomed out and flags a rise in profits for 2014. Peer SSAB (Other OTC: SSAAF - news) backs that more optimistic view even as it posts a weak fourth quarter.

In response, shares in ArcelorMittal lead gainers across the sector index and the broader FTSEurofirst 300, up 3.6 percent, while SSAB falls 3 percent.

Heading into the numbers, the majority of analysts covering ArcelorMittal, 21 out of 34, had either a "buy" or "strong buy" recommendation on the firm, StarMine data shows.

Demand to trade ArcelorMittal is high in early deals, with order flow at 87 percent of its 90-day daily average after an hour of trade, against 18 percent for the FTSEurofirst 300.

Reuters messaging rm://simon.jessop.thomsonreuters.com@reuters.net