* FTSEurofirst 300 index up 2.2 percent, seen range-bound
* Banks rally on U.S. mortgage relief plan
* Basic resources gain on higher copper prices
By Peter Starck
FRANKFURT, Feb 13 (Reuters) - European shares rose on Friday
as banks drew strength from a U.S. plan to subsidise mortgage
payments for troubled homeowners, and basic resource stocks
rallied on the back of higher base metals prices.
At 0935 GMT, the FTSEurofirst 300 <> index of top
European shares was up 2.2 percent at 809.49 points, wiping out
the two previous sessions' losses.
"We are in a trading range. After two weaker days the market
goes up again. It's positive that there is no sustained downward
pressure," said Giuseppe-Guido Amato, analyst at brokerage Lang
& Schwarz in Duesseldorf.
"But we have not yet seen any new investor money coming in
to the markets to support a sustained rise," he added.
In financials, Credit Suisse <CSGN.VX> rose 6.4 percent,
Deutsche Bank <DBKGn.DE> 6.3 percent, Barclays <BARC.L> 4.7
percent and BNP Paribas <BNPP.PA> 4.5 percent. The DJ Stoxx
European bank index <.SX7P> was up 3.3 percent.
"Significant weakness in the financial sector, reflecting
waning confidence in the potential for policy measures to bring
relief, was reversed on reports that a scheme to subsidise
struggling mortgage holders will soon be announced," NCB
Stockbrokers said in a note, referring to Wall Street's
turnaround on Thursday. [] []
Basic resources rallied, with the DJ Stoxx European sector
index <.SXPP> up 3.4 percent on the back of higher copper
prices.
"Given growing indications from companies that inventories
of raw materials and intermediates are very low, a stabilisation
of production in the economy ... will trigger a clear demand
push for basic goods in the coming months," UniCredit said in an
strategy note.
SHINY STEEL
Shares in steel maker ArcelorMittal <ISPA.AS> rose 5.6
percent and German rival Thyssen Krupp <TKAG.DE> added 4.5
percent, the latter after reporting quarterly earnings ahead of
market expectations. []
"Today's comparably robust news flow will act as a positive
short-term catalyst," said Commerzbank analyst Dirk Nettling,
who rates ThyssenKrupp "hold".
Shares in Pernod Ricard <PERP.PA> climbed 5.5 percent after
the wine and spirits maker posted profits above the consensus
market forecast.
Michelin <MICP.PA> gained 4 percent even though the tyre
maker's full-year profit fell more than expected and Air
France-KLM <AIRF.PA> rose 5.3 percent despite a quarterly loss.
"We are encouraged by the initiatives it (Air France) is
currently putting in place to protect its financial position,"
NCB analyst Neil Glynn said.
Shares in the London Stock Exchange <LSE.L> rose 5 percent
after the company appointed equities trading veteran Xavier
Rolet, the former head of Lehman Brothers in France, as its new
chief executive, taking over from Clara Furse on May 20.
[]
Credit Suisse said in an equity research note it now expects
European corporate operating earnings to fall by 34 percent over
the next 12 months. Much of that, however, appears to be
reflected in share prices.
"Most measures show good, but not excellent, value for
equities," Credit Suisse said.
Later in the day investors will get the next piece of
economic data with the University of Michigan survey of U.S.
consumer confidence due for release at 1455 GMT.
(Editing by Greg Mahlich)
