(Corrects attribution of quote in 10th paragraph, Potts not
Winder)
* FTSEurofirst 300 index up 0.4 pct
* Roche helps drugmakers
* Banks recover from Thursday's losses
By Christoph Steitz
FRANKFURT, Jan 30 (Reuters) - European shares recovered on
Friday, led by pharma stocks as Roche lowered its takeover bid
for Genentech, but also ahead of economic data from the United
States and Europe which is expected to be bleak.
At 1003 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.4 percent at 799.61 points, after
having been down as much as 0.6 percent earlier.
Swiss drugmaker Roche Holding AG <ROG.VX> rose 1.7 percent
after it launched a hostile bid for Genentech <DNA.N>, and cut
its offer for the 44 percent of the U.S. biotechnology company
it does not already own. []
Banks also recovered from Thursday's losses as strategists
pointed to positive sentiment returning to the sector.
"Investors seem to acknowledge efforts to increase
visibility and transparency in the banking sector," said Henk
Potts, strategist at Barclays Stockbrokers.
"Positive news flow from the banking sector also helps in
today's markets," he said.
Barclays <BARC.L> was the top gainer, up 6.3 percent. In
Davos on Friday, Chairman Marcus Agius said he sees the package
of measures announced by the British government last week as
positive. []
Royal Bank of Scotland <RBS.L> and Deutsche Bank <DBKGn.DE>
were up between 5.7 percent and 3.2 percent, respectively while
the DJ Stoxx banks index <.SX7P> was up 1.2 percent.
Across Europe, the FTSE 100 <> and Germany's DAX
<> were both 0.4 percent lower and France's CAC 40 <>
was down 0.6 percent.
BRACED FOR HORRENDOUS FIGURES
"However, what we are seeing today is a nervous trading
session and the market is braced for a set of pretty horrendous
numbers from the United States later today," Potts said.
U.S. GDP figures for the fourth quarter, due at 1330 GMT,
are expected to show a contraction of 5.4 percent in the fourth
quarter.
Data showed that euro zone unemployment rose to 8.0 percent,
above the Reuters poll of 7.9 percent. [].
Joerg Rahn, senior economist at MM Warburg, also pointed to
negative macroeconomic news flow from Japan, where production
fell a record 9.6 percent in December. []
France Telecom <FTE.PA> dropped 1.9 percent after JP Morgan
cut its price target to 19.70 euros from 20.40 euros, with an
"underweight" rating on the stock.
Chemicals were the top declining sector, with the DJ Stoxx
chemicals index <.SX4P> down 0.4 percent.
BASF fell 1.7 percent, after Morgan Stanley lowered its
price target in the stock to 30 euros from 40 euros.
($1=.7645 Euro)
(Reporting by Christoph Steitz; Editing by Sharon Lindores)
