* FTSEurofirst 300 up 0.4 percent
* Banco Popolare rises after results
* For up-to-the-minute market news, click on []
By Brian Gorman
LONDON, Aug 30 (Reuters) - European shares rose in early
trade on Monday, extending a rally to a third day after
reassurances the U.S. Federal Reserve was ready to take further
steps if needed to spur economic recovery.
Trading was set to be subdued with British markets closed
for a holiday.
At 0839 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.4 percent at 1,030.07 points, after
rising 0.6 percent on Friday.
The European benchmark index is up nearly 60 percent from
the lifetime low hit on March 9, 2009. But it is down more than
1 percent in 2010, as investors have become worried about
European debt levels and the strength of the economic recovery.
Energy companies rose, as crude prices <CLc1> stayed near an
eight-week high. Total <TOTF.PA> and ENI <ENI.MI> rose 0.4
percent and 0.6 percent respectively.
"(Bernanke's statement) was reassuring, but predictably so.
There was no big positive surprise," said Bernard McAlinden,
investment strategist at NCB Stockbrokers in Dublin.
"As long as the economy stays out of recession, and we have
some growth, the markets won't be too worried. The consensus is
there won't be a double dip," he said.
Across Europe, Germany's DAX <> and France's CAC40
<> were up 0.2 percent and 0.1 percent respectively
The Euro STOXX 50 <>, the euro zone's blue chip
index, rose 0.2 percent to 2,634.70 points, pushing nearer
2,669, the 38.2 percent Fibonacci retracement of the index's
fall from an April high to a May low, a key support level.
ZODIAC IS STAR PERFORMER
French aerospace parts maker Zodiac Aerospace <ZODC.PA> rose
14 percent on reports French conglomerate Safran <SAF.PA> was
set to launch an offer.
Norwegian group Orkla <ORK.OL> rose 5.4 percent after South
Korean group POSCO <005490.KS> said it was considering a
takeover of Elkem, a maker of silicon for solar panels, and a
unit of Orkla.
News of mergers and acquisitions has been a factor in
buoying markets in recent days. But reaction on Monday to the
latest M&A developments was not totally positive.
German chipmaker Infineon <IFXGn.DE> fell 1.3 percent after
agreeing to sell its wireless unit to Intel <INTC.O> for $1.4
billion. []
French drugmaker Sanofi-Aventis <SASY.PA> rose 0.4 percent
after publicly disclosing its $18.5 billion, $69-per-share cash
offer for U.S. biotechnology company Genzyme Corp <GENZ.O>.
[]
Novartis <NOVN.VX> rose 1 percent as an experimental blood
thinner it is developing moved into final-stage clinical
testing.
Shares in German utilities RWE <RWEG.DE> and E.ON <EONGn.DE>
were both up 1 percent after Chancellor Angela Merkel spoke out
in favour of extending the use of nuclear power plants.
Banco Popolare <BAPO.MI> rose 3 percent after posting late
on Friday a net income of 360 million euros in the second
quarter, compared with a loss of 14.4 million euros a year
before. []
Other banks to gain included Banco Santander <SAN.MC> and
Societe Generale <SOGN.PA>, up 1 percent and 1.1 percent
respectively.
The Bank of Japan buckled under government pressure and eased
monetary policy at an emergency meeting on Monday in an effort
to curb a rise in the yen threatening a fragile economic
recovery. []
"The Bank of Japan stepped up its unconventional stimulus,
but not any more than had been expected," said McAlinden.
U.S. stocks posted their best gains in nearly four weeks on
Friday. U.S. Federal Reserve Chairman Ben Bernanke told central
bankers at a conference in Jackson Hole, Wyoming the recovery
has weakened more than expected but the U.S. central bank was
ready to take further steps if needed to spur the recovery.
[]
(Editing by Dan Lalor)
