* FTSEurofirst 300 index up 0.7 percent
* Rio Tinto gains after Alcan unit sale
* Genmab slumps after drug trial disappoints
By Joanne Frearson
LONDON, Aug 18 (Reuters) - European shares were higher in
early trade on Tuesday, with banks and commodity stocks gaining
as investors awaited the release of German ZEW figures and U.S.
housing starts later in the day.
By 0801 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was up 0.7 percent at 927.99 points. The
index fell 2 percent on Monday, but has gained nearly 44 percent
since reaching a lifetime low on March 9.
"We have the German ZEW Confidence figures (due at 0900 GMT)
which are quite likely to be positive. The story of growing
confidence in Germany will be treated with relief. ... If the
ZEW are not upbeat, investors will be wary," said Justin
Urquhart Stewart, director at Seven Investment Management.
The German ZEW current figure is seen down -85.0, better
than -89.3 in July.
Banks added the most points to the index. HSBC Holdings
<HSBA.L> was up nearly 3 percent after Goldman Sachs said HSBC's
troubled U.S. unit will stop being a major drag on earnings
earlier than expected. The broker upgraded the stock to 'buy'
from 'neutral.
UniCredit <CRDI.MI>, Banco Santander <SAN.MC> and Credit
Suisse <CSGN.VX> were up 0.8-1.8 percent.
Energy stocks were higher as crude <CLc1> steadied at $67 a
barrel with the growth of Hurricane Bill offering some price
support. BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell <RDSa.L>
and Total <TOTF.PA> gained 0.4-0.7 percent.
RIO TINTO GAINS, SELLS ALCAN UNIT
Miners were on the upside. Rio Tinto <RIO.L> rose 1.8
percent after agreeing to sell its Alcan packaging unit for
about $2 billion to Australia's Amcor <AMC.AX>, easing its debt
burden after an ill-timed acquisition two years ago.
[]
The sector was supported by higher metal prices, copper
<MCU3=LX> gained 1.2 percent, aluminium <MAL3=LX> was up 2.8
percent and nickel <MNI3=LX> rose 2.1 percent.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Eurasian Natural Resources Corporation <ENRC.L> and
Xstrata <XTA.L> were up 0.6-3.4 percent.
On the downside, drugmakers were in the doldrums. Danish
biotech company Genmab <GEN.CO> slumped 30 percent after saying
it would report a bigger loss in 2009 than initially expected
after failing to get a hoped-for milestone payment in the wake
of disappointing drug trial results. []
Later in the session, investors will eye U.S. housing starts
and building permits for July at 1230 GMT.
Economists in a Reuters survey forecast an increase to a
600,000 annualised rate from 582,000 in June, and a total of
580,000 building permits compared with 570,000 the prior month.
"U.S. housing starts will hopefully be showing positive
figures. The market has got itself into a position now that it
is expecting good news and anything that isn't good is likely to
be greeted with severe concerns," said Urquhart Stewart.
Across Europe, the FTSE 100 <> index was up 0.8 percent
ahead of British inflation date for July at 0830 GMT, while
Germany's DAX <> and France's CAC 40 <> both gained
0.5 percent.
(Reporting by Joanne Frearson; Editing by Dan Lalor)
