European shares rise on Greek hopes; banks up

                                
 * FTSEurofirst 300 index rises 0.9 percent
                                
 * Banks reverse earlier falls on Greek hopes
                                
 * Volvo soars after results; Ericsson up
                                
 * For up-to-the minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Joanne Frearson
                                
 LONDON, April 23 (Reuters) - European shares rose on Friday,
snapping two days of declines, with banking stocks rebounding
from earlier falls on reports by Greek media that the country
would ask for financial aid.
                                
 The market was also given support by strong earnings news.
Volvo <VOLVb.ST> surged 12.5 percent after first-quarter profits
beat expectations.
                                
 By 0901 GMT, the pan-European FTSEurofirst 300 <.FTEU3>
index of top shares was up 0.9 percent at 1,093.66 points. The
index, which gained nearly 26 percent in 2009, is up only 4.6
percent this year.
                                
 "Maybe investors feel yesterday was overdone," said Peter
Dixon, economist at Commerzbank.
                                
 "There has been a little bit of corporate news and there is
a general expectation that earnings are quite strong, giving
Europe a bit of a lift."
                                
 Banking stocks reversed the previous session's sharp losses.
Citing unnamed sources, Greek media said Athens is poised to
trigger the European Union/International Monetary Fund financial
aid package. [ID:nATH005399]  
                                
 The sector struggled on Thursday after Eurostat said
Greece's budget deficit was worse than feared and Moody's
downgraded the country's sovereign rating.
                                
 Greek banking stocks <.FTATBNK> soared 6.9 percent. HSBC
<HSBA.L>, Banco Santander <SAN.MC> and Barclays <BARC.L> gained
1.3 to 2 percent.
                                
 Royal Bank of Scotland <RBS.L> was up 2.9 percent after
Barclays Capital said it prefers the majority state-owned bank
to Lloyds Banking Group <LLOY.L>.
                                
 
                                
 ERICSSON GAINS
                                
 Shares in Ericsson <ERICb.ST> rose 5.6 percent as analysts
focused on strong margin growth as a sign of better times ahead
for the mobile telecom gear maker after it undershot estimates
for first-quarter profit. [ID:nLDE63M0PP]
                                
 The sector was badly hit on Thursday after Nokia <NOK1V.HE>
results disappointed.
                                
 Chemical stocks were in demand. Dutch group Akzo Nobel NV
<AKZO.AS> gained 4.9 percent after it posted a
better-than-expected 38 percent rise in first-quarter core
profit.
                                
 Miners were in favour, recovering from the previous two
sessions' sharp losses. Anglo American <AAL.L>, Lonmin <LMI.L>
and Rio Tinto <RIO.L> rose 1.2 to 1.8 percent.
                                
 In individual stocks, German sporting goods maker Adidas
<ADSG.DE> rose 3.6 percent after it lifted its full-year profit
outlook and reported better-than-expected first-quarter results.
                                
 L'Oreal <OREP.PA> was up 2.6 percent after the French
cosmetics giant pledged to improve its results this year after
first-quarter sales beat forecasts and marked a clear return to
growth.
                                
 On the downside, SES <SESFd.PA> shares fell 5.2 percent
after the world's second-largest satellite operator cut its 2010
growth forecast and reported weaker-than-expected first-quarter
figures.
                                
 Across Europe, the FTSE 100 <.FTSE> index was up 0.8
percent, Germany's DAX <.GDAXI> was 1.1 percent higher and
France's CAC 40 <.FCHI> rose 0.6 percent.
 (Reporting by Joanne Frearson; Editing by Michael Shields)