* FTSEurofirst 300 index up 0.3 pct, adds to Tuesday's gains
* Deutsche Boerse up after announcing more cost cuts
* German business sentiment rises more than expected
* For up-to-the-minute market news, click on []
By Harpreet Bhal
LONDON, March 24 (Reuters) - European shares rose on
Wednesday, hitting a 17-month high, with Deutsche Boerse
<DB1Gn.DE> up as it plans more cost savings, while upbeat German
business sentiment fuelled confidence in the economic recovery.
By 0933 GMT, the pan-European FTSEurofirst 300 <>
index of top shares rose 0.3 percent to 1,075.20 points, hitting
an intraday high at 1,077.61 points, the highest since October
2008.
Deutsche Boerse <DB1Gn.DE> rose 4.5 percent, hitting a
10-week high after the German stock exchange operator said it
will cut 3 percent of staff and shift jobs outside Germany as
part of a broader cost-cutting move to save 150 million euros by
2013. []
Banks gained ground, with Barclays <BARC.L>, HSBC <HSBA.L>,
Societe Generale <SOGN.PA>, BNP Paribas <BNPP.PA> and Deutsche
Bank <DBKGn.DE> up 0.1 to 1.1 percent.
The FTSEurofirst 300 has gained around 67 percent since
hitting a record low in March last year, but the market's sharp
recovery from a dismal 2008 has lost steam over the past few
months, and Europe's benchmark index is up a meagre 3 percent so
far in 2010.
"A rally of 60 to 70 percent from the bottom shows there is
a lot of hope already in the market and a belief that the worst
is over... but sooner or later this market is going to want
proof on the anticipated good news (about the economy)," said
Koen de Leus, economist at KBC Securities.
The UK budget, expected at around 1230 GMT, will be closely
watched for how it may boost the popularity of the ruling Labour
Party, as well as for specific economic measures.
Lingering worries over Greece's debt situation weighed on
the market, ahead of an EU summit which starts on Thursday.
"Any news on a plan to help Greece might push the market a
little higher but if it is not concrete enough or if
uncertainties remain then I think the market may get a bit
tired," de Leus said.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC 40 <> advanced 0.1 to 0.3
percent.
BUSINESS CLIMATE RISES
German business sentiment surged in March to it highest
level since June 2008, a survey by the Munich-based Ifo think
tank showed, pointing to a strong improvement in the recovery in
Europe's largest economy. []
Later in the session, investors will focus on a slew of data
from the United States, including the mortgage market index,
durable goods figures and new home sales numbers, for further
evidence of the country's economic recovery.
Among other individual movers, shares in industrial group
Fiat <FIA.MI> rose 3.7 percent after media reports that the
company is planning more than expected job cuts of 5,000 in
Italy and may spin off its car activities sooner than thought
this summer. []
On the downside, Man Group <EMG.L> fell 0.3 percent after
the hedge fund firm said assets under management have fallen
further to $39.1 billion, as clients continued to withdraw their
cash following poor performance from its flagship AHL fund.
[]
Wolseley <WOS.L> shed 2 percent, weighed by a downgrade by
UBS which reduced the stock to "neutral" from "buy" as the
broker said cost reductions had run its course and additional
cuts seem likely to be offset by cost inflation.
Aviva <AV.L> was weak as it traded ex-dividend.
(Editing by Louise Heavens)
