Banks, commods push European shares higher

                                
 * FTSEurofirst 300 index up 0.9 pct
                                
 * Banks gain; Lloyds falls
                                
 * Commods track crude, metals higher
                                
 
                                
 By Joanne Frearson
                                
 LONDON, Oct 19 (Reuters) - European shares rose in early
trade on Monday after the previous session's retreat, with
banking stocks advancing and commodities tracking rising crude
and metal prices.
                                
 By 0820 GMT, the FTSEurofirst 300 <.FTEU3> index of top
European shares was up 0.9 percent at 1,018.81 points, just shy
of the 12-month highs of 1,026.43 touched on Friday.
                                
 Investors were also awaiting more corporate earnings news,
with results from Texas Instruments <TXN.N> and Apple <AAPL.O>
due later in the day.
                                
 "There is a positive attitude and again we are looking at
more corporate results coming through. There are high
expectations for Apple, the company has had a fantastic
corporate story over the past few years," said Justin Urquhart
Stewart, director at Seven Investment Management.
                                
 "Texas Instruments, however, we will see if they have
started stabilising themselves and orders for IT have started
picking up. There are still question marks that remain there,"
said Urquhart Stewart.
                                
 Banks added the most points to the index. HSBC <HSBA.L>,
Banco Santander <SAN.MC> and BNP Paribas <BNPP.PA> were up 1.2
to 2.2 percent.
                                
 However, Lloyds Banking Group <LLOY.L> slipped 2 percent
after data showed on Saturday that short-sellers are queuing up
ahead of a possible rights issue. [ID:nLH574856] 
                                
 Royal Bank of Scotland <RBS.L> fell 1.7 percent also on cash
call worries.
                                
 The pan-European benchmark, which is up 23 percent so far in
2009, has surged 58 percent since reaching a floor in early
March, but is still down 38 percent from a multi-year peak
touched in mid-2007.
                                
 
                                
 COMMODS GAIN
                                
 Energy stocks featured among the gainers as crude <CLc1>
steadied at $78.92 a barrel after hitting a 12-month high above
$79. BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell <RDSa.L> and
Total <TOTF.PA> were up 0.6 to 1.5 percent.
                                
 Miners rose as copper <MCU3> ticked up 1.1 percent. Anglo
American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>,
Rio Tinto <RIO.L> and Xstrata <XTA.L> were 1.3 to 3.1 percent
higher.
                                
 Food producers were on the upside, with Nestle <NESN.VX>
rising 2.6 percent after UBS raised the group to "buy" from
"neutral".
                                
 German premium carmaker Daimler <DAIGn.DE> advanced 2.1
percent after its chief executive told German magazine
WirtschaftsWoche that the company will overshoot its 2009
savings target of 4 billion euros ($5.95 billion).
                                
 "Intensifying (the) current cost-saving programme should
support shares today," a local trader said.
                                
 Across Europe, the FTSE 100 <.FTSE> index was up 1.3
percent, Germany's DAX <.GDAXI> was 1.2 percent higher and
France's CAC 40 <.FCHI> rose 1.1 percent.
  (Editing by Mike Nesbit)