News: RIO European shares recover from 1-week low as trade talks resume

MILAN, Feb 11 (Reuters) - Gain in heavyweight mining and banking stocks helped European shares recover from one-week lows on Monday as investors turned their focus to the start of a new round of trade talks between Beijing and Washington.

The STOXX 600 .STOXX index was up 0.7 percent by 0828 GMT, helped by a broad-based bounce, while Germany's trade-sensitive DAX .GDAXI was up 0.6 percent and the UK's FTSE .FTSE added 0.7 percent.

China struck an upbeat note as trade talks resumed with the United States, but also expressed anger at a U.S. Navy mission through the disputed South China Sea, casting a shadow over the prospect for improved ties between them.

The basic resources index .SXPP rose 0.8 percent, leading sectoral gainers, as China iron ore prices hit a record on worries that supply from Brazil may fall after a dam accident.

Shares in Glencore GLEN.L , Rio Tinto RIO.L and BHP BHPB.L were all up around 1 percent. Banks were also among the biggest sectoral gainers with Banco BPM BAMI.MI up 3.3 percent after the mid-sized Italian lender disclosed capital requirements set by the European Central Bank.

Deutsche Post DPWGn.DE rose 2.6 percent on a report saying that Germany is set to grant the postal services firm a higher-than-expected increase in postage for letters from the summer to account for fewer letters sent and for higher costs.

Just Eat JE.L rose 1.3 percent after its shareholder Cat Rock urged the British takeaway ordering website to start merger discussions. Shares in rivals Delivery Hero DHER.DE and Takeaway.com TKWY.AS both rose nearly 1 percent.

Among the few fallers was Smith & Nephew SN.L , down 2.6 percent, following a report it has held talks to buy U.S. medical equipment maker NuVasive NUVA.O in a deal that would be worth more than $3 billion.