European shares rebound as weak euro boosts exporters

* Rebound comes despite Wall St slump overnight

* Germany's DAX touches new record highs

* Euro's renewed slump boosts European exporters

* Strong results lift Adecco (VTX: ADEN.VX - news) shares

By Sudip Kar-Gupta and Blaise Robinson

LONDON/PARIS, March 11 (Reuters) - European shares bounced back on Wednesday from a sharp sell-off in the previous session, as a drop in the value of the euro lifted stocks in the region's exporters.

Germany's DAX, whose constituents include major exporters BMW (Swiss: BMW.SW - news) and Volkswagen (Other OTC: VLKAF - news) , touched a new record high, while the broader pan-European FTSEurofirst 300 index rose 1.4 percent.

The euro hit another 12-year low against the dollar on Wednesday, extending a broad decline since the European Central Bank kicked off a 1.1 trillion euro ($1.2 trillion) asset-buying programme at the start of the week.

Traders said that as the ECB's bond-buying programme meant that German and European equities looked more attractive than Bunds with better yields.

"The strength of the U.S. dollar is going to support European equities. We remain with a 'buy on the dip' strategy," Swiss bank Reyl's chief strategist, Francois Savary, said.

The rebound came in spite of a slump in New York overnight.

The U.S. S&P 500 fell 1.7 percent on mounting worries over the pace of economic growth and the prospect that the U.S. Federal Reserve could raise interest rates as soon as June.

Oanda senior market analyst, Craig Erlam, said he expected such sharp swings and divergences to persist in the near future.

"In the last 48 hours we've seen record low yields on euro zone debt, falling yields on U.S. debt despite the first rate hike being just around the corner, a collapse in the euro driving the rally in the dollar, which in turn has brought weakness in commodities that yesterday led to a big sell off in stock indices," said Erlam.

"Under the circumstances, it's hard to argue that the ECB's programme isn't causing waves in the markets," he said.

Among standout movers, Credit Suisse (NYSE: CS - news) rose 2 percent, extending Tuesday's near 8-percent surge after it poached Prudential (HKSE: 2378.HK - news) 's Tidjane Thiam as its CEO. Several banks, including JP Morgan, upgraded targets on Credit Suisse.

Recruitment company Adecco also advanced 4.2 percent after its fourth-quarter profits beat expectations.

Bucking the trend, shares in JCDecaux (Paris: FR0000077919 - news) fell 4.8 percent after the holding company of the Decaux family sold a 5.4 percent stake in the outdoor advertising group.

Europe bourses in 2015: http://link.reuters.com/pap87v

Asset performance in 2015: http://link.reuters.com/gap87v

Today's European research round-up (Editing by Louise Ireland)