* FTSEurofirst 300 index closes 0.2 pct higher
* Miners gain as metals rally; offset weak banks
* Vodafone up on Verizon dividend talk
By Harpreet Bhal
LONDON, March 29 (Reuters) - European shares ended higher on
Monday, with miners supported by strong metals prices offsetting
weaker banks, while Vodafone <VOD.L> rose on reports of talks
with U.S. partner Verizon <VZ.N> over dividend payments.
The pan-European FTSEurofirst 300 <> index of top
shares closed 0.2 percent higher at 1,079.24 points.
The index posted its fourth weekly gain last week, and is on
track to post a rise of more than 7 percent in March. Analysts
expected equities to be well supported as the end of the first
quarter looms, but they warn that some consolidation could be
expected in the coming weeks following recent strong gains.
"We're now getting to the point where people are saying we
have had some terrific gains and maybe we have come a little bit
too far too soon and we could see some consolidation," said
Joshua Raymond, market strategist at City Index.
Miners were in demand as metals prices rallied. Copper hit
its highest in about three months as the dollar softened, while
expectations of stronger demand from China lent additional
support to prices.
Anglo American <AAL.L>, Kazakhmys <KAZ.L>, BHP Billiton
<BLT.L>, Xstrata <XTA.L> and Rio Tinto <RIO.L> added 0.5 to 3.2
percent.
Vodafone <VOD.L> was 3 percent higher after the Sunday
Telegraph reported the firm was in holding talks with U.S.
joint-venture partner Verizon Communication <VZ.N> over the
payment of a dividend. A Vodafone spokesman declined comment.
Some concerns over sovereign debt problems eased as Greece
launched a 7-year, 5 billion euro benchmark bond, returning to
capital market for the first time since euro zone leaders agreed
to give it a financial safety net.
Across Europe, the FTSE 100 <>, Germany's DAX <>
and France's CAC 40 <> advanced 0.1 to 0.6 percent.
BANKS PRESSURED
Banks were lower. Barclays <BARC.L>, HSBC <HSBA.L>, Lloyds
Banking Group <LLOY.L> and Commerzbank <CBKG.DE> and Deutsche
Bank <DBKGn.DE> shed 0.1 to 1.8 percent.
Allied Irish Banks <ALBK.I> and Bank of Ireland <BKIR.I>
fell 19.6 and 10.4 percent, respectively, as the government
prepared to take control of a much bigger chunk of the financial
sector than initially planned. []
In New York, Citigroup <C.N> dropped 3.5 percent after the
U.S. Treasury said it plans to sell all of the 7.7 billion Citi
shares it owns over the course of this year, unloading its stake
in the banking group two years after rescuing it.
On the macroeconomic front, euro zone economic sentiment
increased slightly more than expected in March and inflation
expectations also rose, data showed on Monday. []
U.S. consumer spending rose as expected in February for a
fifth straight month, while stagnant incomes pushed savings to
their lowest level since October 2008. []
Focus later in the week is likely to turn to U.S. non-farm
payrolls numbers, due on Friday, with economists forecasting the
economy created about 190,000 jobs in March.
(Editing by Rupert Winchester)
