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** The STOXX 600 European telecoms index up 2 pctand hits against June peak to touch a 6-1/2 year intra-day highwith Vodafone the biggest boost.
** Vodafone shares up 5 pct & on track for their best day ofthe year on brighter outlook, lifts peers.
** Telecoms the best performing sector in Europe on the dayas sector claws back more of its year-to-date underperformance.
** Telecoms have largely missed out on the rally indefensive sectors this year. Healthcare, utilities & food & beverages all on double-digit gains sofar in 2014.
** Sector is up 4.4 pct year-to-date (in terms) vs a 3.3pct rise for the broader STOXX 600.
** Revenue declines and pricing pressures in key Europeanmarkets as well as tougher regulations has dimmed the sector'sappeal.
** Vodafone comments on mobile service revenue trends inlatest results offer some relief. (RM: vikram.subhedar.thomsonreuters.com@reuters.net)
