* FTSEurofirst 300 index up 0.2 pct
* UniCredit jumps on earnings, Insurers top sector
* UK jobless data weighs on British stocks
* For up-to-the-minute market news, click on []
By Christoph Steitz
FRANKFURT, March 18 (Reuters) - European shares were
slightly higher by mid-morning on Wednesday, lifted by
financials, but gains were limited by UK jobless data showing
that the number of jobless rose to more than 2 million.
At 1008 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was up 0.2 percent at 717.08 points. The
index lost 45 percent in 2008 and is down 13.8 percent so far
this year.
Italian bank UniCredit <CRDI.MI> jumped 7.8 percent, after
the company posted a 38 percent fall in 2008 net profit on
Wednesday, ahead of analysts' forecasts [].
The DJ STOXX insurers index <.SXIP> was the top sectoral
leader, up 2.3 percent while the DJ Stoxx banks index <.SX7P> was
up 1.4 percent.
"Equity markets are trying to shrug off the uncertainty of
the last months," market strategist Heino Ruland from Ruland
Research said, adding that the strong boosts on Wall Street and
Japan overnight had a positive effect on European stocks.
U.S. stocks soared on Tuesday as an unexpected leap in
housing starts pushed Home Depot and other retailers higher
[], while Japanese banking stocks rose on optimism
over steps by the Bank of Japan to bolster the economy.
[]
In Europe, Royal Bank of Scotland <RBS.L>, Allianz <ALVG.DE>
and Barclays <BARC.L> were all up between 2.6 and 3.8 percent.
Across Europe, the FTSE 100 <> index was down 0.1
percent, Germany's DAX <> was up 1.2 percent and France's
CAC 40 <> was 0.7 percent higher.
Frankfurt-listed shares in Sun Microsystems <JAVA.F>
<JAVA.O> rocketed 60 percent in Frankfurt floor trading after
The Wall Street Journal reported that IBM <IBM.N> is in talks to
buy the company for at least $6.5 billion.
FOCUS ON FED
Later in the day, the focus shifts to the results of a
two-day U.S. Federal Reserve meeting, and whether economic
conditions warrant additional policymaker action to boost
lending.
"We expect the Fed to refrain from buying government bonds.
This might cause some disappointment and make a recovery of the
prices for U.S. Treasuries and Bunds less likely for now, as
does the supply side pressure in the Eurozone," Commerzbank
wrote in a note.
Rio Tinto <RIO.L> dropped 3.4 percent as the company's
planned $19.5 billion tie-up with China's Chinalco is facing
political opposition in Australia. []
Shares in German chemical company Lanxess lost 8.1 percent,
making it the worst performer among German midcaps <.MDAXI>,
after the chemicals company gave a gloomy outlook for its first
quarter in 2009 and unexpectedly slashed its 2008 dividend by 50
percent to 0.50 euros per share. []
"The cut of the dividend payment is consistent. The times
are hard in the chemical industry. But the shares at least could
build out a bottom, which is a first step," Close Brothers
Seydler wrote in a note.
(Reporting by Christoph Steitz; Editing by Rupert
Winchester)
