Europe shares snap losing streak, defensives up

                                
 * FTSEurofirst 300 index closes up 0.7 percent
                                
 * Defensives in favour, drugmakers gain
                                
 * Commodities track crude, metals higher
                                
 
                                
 By Joanne Frearson
                                
 LONDON, Feb 8 (Reuters) - European shares snapped a
three-day losing streak on Monday, boosted by defensive stocks
such as drugmakers and commodities tracking crude <CLc1> and
metal prices higher.
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
closed up 0.7 percent at 979.33 points in choppy trade, having
been as high as 982.02 points and as low as 964.22 earlier.
                                
 "Markets are in a tug of war. There is a chance of
stabilisation in the short-term," said Gerhard Schwarz, head of
global equity strategy at UniCredit in Munich.
                                
 "But the choppy conditions are likely to prevail over some
time, unless we get a more clearer picture of what is happening
(with the euro zone sovereign debt problems) and what help looks
like coming."
                                
 Over the weekend, officials from the European members of the
Group of Seven industrialised countries vowed to hold Greece to
its cost-cutting programme. But investors were waiting for
European leaders to take further steps to address the region's
debt crisis. [ID:nN06216480]
                                
 Defensive stocks were in favour. Drugmakers Sanofi Aventis
<SASY.PA>, GlaxoSmithKline <GSK.L> and AstraZeneca <AZN.L> rose
1.1 to 2.5 percent, while food producer Nestle <NESN.VX> gained
2.2 percent.
                                
 Miners rose with the rebound in metal prices from last
week's lows. Xstrata <XTA.L> was 3.6 percent higher after it
reinstated dividends, citing an encouraging outlook for
commodities demand in the medium term. [ID:nLDE61326M]
                                
 West African-focused gold miner Randgold Resources <RRS.L>
gained 6.4 percent, lifted by a 79-percent jump in full-year
profit. [ID:nLDE6131FY]
                                
 
                                
 OILS GAIN
                                
 Energy stocks were in demand, spurred on by a 1 percent gain
in crude. BP <BP.L>, Total <TOTF.PA> and Royal Dutch Shell
<RDSa.AS> were up 0.5 to 1.9 percent.
                                
 Banks rebounded from earlier falls. UBS <UBSN.VX>, Banco
Santander <SAN.MC>, Dexia <DEXI.BR> and Credit Agricole
<CAGR.PA> were 1.9 to 4.7 percent higher.
                                
 However, Greek banks National Bank of Greek <NBGr.AT>, Alpha
Bank <ACBr.AT> and Bank of Piraeus <BOPr.AT> lost 5.4 to 8.5
percent.
                                
 "The fact that Greek (bond) spreads remain at that level
raises an issue for Greek banks' net equity position and that is
why the sector is under heavy pressure," said Pegasus Securities
analyst Manos Hatzidakis.
                                
 Insurers were on the downside on concerns over the sector's
exposure to sovereign debt. Aviva <AV.L>, Legal & General
<LGEN.L> and Swiss Life <SLHN.VX> slipped 2.6 to 3.5 percent.
                                
 SAP <SAPG.DE> fell 2.5 percent after the abrupt resignation
of Chief Executive Leo Apotheker, as the market sought direction
on where the world's largest business software company is
headed. [ID:nLDE6170B2]
                                
 Across Europe, the FTSE 100 <.FTSE> index gained 0.6
percent, Germany's DAX <.GDAXI> was 0.9 percent higher and
France's CAC 40 <.FCHI> rose 1.2 percent.
 (additional reporting by Harpreet Bhal; Editing by David
Cowell)