(Reuters) - European shares rose on Monday, above key resistance levels, rebounding from the previous session's sharp losses, with commodity stocks leading the risers supported by stronger metal and oil prices. Growing speculation the U.S. Federal Reserve will have to buy bonds sooner rather than later, to bolster the sagging economy also lent support, ahead of the Fed's meeting on Tuesday. By 4:50 a.m. ET, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was 1.3 percent higher at 1,070.47 points after falling 1.1 percent on Friday. The Euro STOXX 50 .STOXX50E, the euro zone's blue-chip index, rose 1.6 percent to 2,822.85 points, above its 200-day moving average of around 2,797 points and the 61.8 percent Fibonacci retracement of the index's fall from an April high to a May low at 2,805.95 points -- a positive signal. "The market has bounced back after the U.S. non-farm payrolls and after a weekend of no bad news the market is looking strong," said Simon Denhman, chief executive officer of London Capital Group. "Europe has broken above recent resistance levels, but the FTSE 100 .FTSE still has to get above 5,420, the Dow Jones industrial average .DJI has to get above 10,700 and the S&P 500 .SPX has to get above 1,128, for it to break out further." The FTSE 100 was up 1.6 percent at 5,414.97 points, while the Dow Jones ended on Friday at 10,653.56 points and the S&P 500 at 1,121.64 points. Mining shares were in demand, copper rose 1 percent supported by a softer dollar and hopes for improving demand if the Federal Reserve further eases monetary policy. Lending support to prices were comments from a leading government economist in China that the economy is on course for a strong second half, which would bring full-year growth to about 10-11 percent, more bullish than other forecasts. Antofagasta (ANTO.L), BHP Billiton (BLT.L), Rio Tinto (RIO.L) and Xstrata (XTA.L) were up 1.9 to 2.3 percent. Oil stocks were higher as crude gained 0.9 percent. BP (BP.L) rose 2.3 percent after it said on Sunday its pressure testing shows it has "an effective cement plug" on its Macondo oil well in the Gulf of Mexico. INTERNATIONAL POWER GAINS International Power (IPR.L) jumped 4.4 percent. French utility GDF Suez (GSZ.PA) and British peer International Power could announce an agreement on a planned asset tie-up in coming days, British newspapers reported on Sunday. Banking shares also recovered from Friday's losses, with the STOXX Europe Banks .SX7P index up 1.5 percent. Societe Generale (SOGN.PA), BNP Paribas (BNPP.PA) and Barclays (BARC.L) rose 2.2 to 2.8 percent. However, other analysts were skeptical of the rally. "Don't hold your breath, I think the market will give back the gains during the course of the day," said David Buik, a senior partner at BGC Partners. "Uncertainty of growth around the world is becoming more apparent every day and we have had a tremendous run following results. I do not think the rally is sustainable." Across Europe, Germany's DAX .GDAXI was up 1.2 percent and France's CAC 40 .FCHI was 1.6 percent higher. (Reporting by Joanne Frearson; Editing by Sharon Lindores)

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