** European equity strategists see cyclical stocksrebounding after several months of lagging against moredefensive names
** Cyclical sectors (MSCI consumer discretionary,financials, industrials, IT and materials) have given up 7 pctagainst defensives (consumer staples, energy, healthcare,telecoms and utilities) since mid-March, but have shown signs ofrebounding during the recent China-led sell-off. Chart: http://link.reuters.com/rad55w
** JPM notes cyclical underperformance has overshot eurozonePMI over a longer term period. Chart: http://link.reuters.com/zad55w
** Eurozone M1 money supply, a leading indicator of PMI,still expanding
** Credit Suisse also notes potential for a cyclicalrebound, says to avoid export-related plays in favour of stockscapturing increased domestic demand
** Broker cites themes including employment agencies (Hays, Adecco, SThree ), Italian autos,retail banks (Intesa Sanpaolo and Sabadell )and software (SAP ) (RM: alasdair.pal.thomsonreuters.com@reuters.net)