* FTSEurofirst 300 ends flat
* Banks recoup some earlier losses; Greece concerns ease
* Drugmakers benefit from clarity over U.S. healthcare bill
By Harpreet Bhal
LONDON, March 22 (Reuters) - European shares closed flat on
Monday, with banks paring some earlier losses as worries over
Greece eased, while drugmakers largely gained after the United
States passed a healthcare bill which provided clarity for the
sector.
The FTSEurofirst 300 <> index of top European shares
closed flat at 1,065.16 points after having traded as low as
1,052.04 points.
Banks were among the biggest fallers, but shaved losses from
earlier in the session. Some uncertainty over European Union aid
for debt-stricken Greece weighed on sentiment but analysts said
most of the concerns had largely been factored into the market.
Barclays <BARC.L>, HSBC <HSBA.L>, BNP Paribas <BNPP.PA> and
Deutsche Bank <DBKGn.DE> were down between 0.2 and 1.1 percent,
while Greek banks <.FTATBNK> slid 2.1 percent.
At the weekend, European leaders sent out conflicting
signals over aid to Greece, with Germany's Angela Merkel urging
Athens to solve its debt problems alone and Italy's Silvio
Berlusconi strongly backing European Union support.
"There is still a degree of concern about Greece but because
it has been around for so long it has been priced into sentiment
in the market unless something dramatic happens," said Joshua
Raymond, market strategist at City Index.
The dollar gave back some of its previous gains, as the euro
hit session highs against the U.S. currency, lifting commodity
prices off their lows.
"The dollar has pared its gains and (as a result) we're not
seeing as much weakness in copper and crude prices, so the
miners have seen a bit of buying back," Raymond said.
Mining companies were higher, with Anglo American <AAL.L>,
BHP Billiton <BLT.L> Rio Tinto <RIO.L> and Antofagasta <ANTO.L>
up 0.3 to 1.6 percent.
Among other sector risers, defensive food producers gained
favour, with Nestle <NESN.VX>, Associated British Foods <ABF.L>
and Lindt & Spruengli <LISN.S> up 0.3 to 1.4 percent.
PHARMAS RISE
The U.S. House of Representatives approved a sweeping
healthcare reform which will extend insurance coverage to nearly
all Americans, expand the government health plan for the poor,
impose new taxes on the wealthy and bar insurance practices such
as refusing to cover people with pre-existing medical
conditions. []
"It's down to people wanting to accept good news about the
healthcare bill ... provided the drug companies and the
insurance companies don't get mutilated," said David Buik,
senior partner at BGC Partners.
Drugmakers largely gained, reversing earlier losses.
GlaxoSmithKline <GSK.L>, AstraZeneca <AZN.L>, Shire <SHP.L> and
Merck <MRCG.DE> added 0.1 to 1 percent.
Healthcare equipment and services firms also rose, with
Fresenius Medical Care <FMEG.DE>, Smith & Nephew <SN.L> and
Sonova <SOON.VX> up 1.3 to 3.2 percent.
A surprise rate hike by India on Friday also put some
pressure on the equity market. The move, along with recent steps
by China to cool its economy, raised concern over a pullback in
loose monetary policy.
"It shows that in some areas of the world central banks are
starting to tighten monetary policy and this creates some
nervousness regarding the medium term impact on the economic
growth backdrop for equities," said Tammo Greetfeld, equity
strategist at Unicredit in Munich.
Across Europe, Britain's FTSE 100 <> eased 0.1 percent,
while Germany's DAX <> and France's CAC 40 <> rose
0.1 percent.
(Editing by David Cowell)
