* FTSEurofirst 300 index up 0.7 percent
* Banking sector gains ahead of Fed meeting
* Royal Dutch Shell rises as targets return to growth
By Joanne Frearson
LONDON, March 16 (Reuters) - European shares bounced back on
Tuesday after slipping in the previous session, with banks
advancing ahead of the outcome of the U.S. Federal Reserve's
policy meeting later in the session.
At 0910 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was up 0.7 percent at 1,058.85 points after
falling 0.7 percent in the previous session. The index which
gained around 26 percent in 2009 is little changed this year,
but has surged 64 percent since a record low in March 2009..
Banks featured among the biggest risers. HSBC <HSBA.L>,
Banco Santander <SAN.MC>, BNP Paribas <BNPP.PA> and Credit
Suisse <CSGN.VX> gained 1 to 2.3 percent.
"I imagine the Fed is going to report interest rates are
going to stay low for an extended period. I don't think there
will be any damage to the market," said Bernard McAlinden,
investment strategist at NCB Stockbrokers in Dublin.
"The euro zone inflation figures will be worth watching as
the trend has been pointing downwards."
The U.S. Federal Reserve is expected to hold interest rates
near zero at a meeting on Tuesday and renew its pledge to keep
borrowing costs very low for a long time, but could note a
brightening economic picture and hint at being closer to
dropping the vow. []
Energy stocks were higher. Royal Dutch Shell <RDSa.L> was up
1.1 percent after it said it was planning a return to robust
growth in oil and gas production after years of decline.
[]
BG Group <BG.L>, BP <BP.L>, Tullow Oil <TLW.L> and Total
<TOTF.PA> rose 0.5 to 0.9 percent.
MINERS IN DEMAND
Miners were in demand as copper <MCU3=LX> gained 1.2 percent
after fears about the impact of Chinese monetary tightening on
demand eased.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Eurasian Natural Resources Corporation <ENRC.L>, Rio
Tinto <RIO.L> and Xstrata <XTA.L> were 1.3 to 2.1 percent higher.
Food producers were in favour. Swiss chocolate company Lindt
& Spruengli <LISP.S> rose 3.6 percent. The company expects to
return to its long-term growth targets in 2011 after subdued
consumer demand for its products and high cocoa prices ate into
profits in 2009. []
Among individual companies, ArcelorMittal <ISPA.AS> was up
2.1 percent after it said it has inked a preliminary agreement
with its Turkish partner Dayen to set up a steel mill in
Northern Iraq. []
On the downside, G4S <GFS.L> fell 2 percent despite a 20
percent rise in full-year profits after analysts pointed to
shrinking organic growth and said investors are unconvinced by
the company outlook. []
Investors awaited euro zone inflation numbers for February
and the German ZEW figures for March, both due at 1000 GMT. U.S.
import/export prices for February and February's U.S. housing
starts figures are due at 1230 GMT.
Across Europe, both the FTSE 100 <> index and Germany's
DAX <> gained 0.7 percent, while France's CAC 40 <>
was up 0.8 percent.
(Reporting by Joanne Frearson; Editing by Hans Peters)
