Banks push European shares to 2-week closing high

                                
 * FTSEurofirst 300 index closes up 1.3 percent
                                
 * Banks rise after BNP Paribas results beat forecasts
                                
 * Synthes falls because it sees low growth in 2010
                                
 By Joanne Frearson
                                
 LONDON, Feb 17 (Reuters) - European shares hit a two-week
closing high on Wednesday, boosted by financials after BNP
Paribas' <BNPP.PA> fourth-quarter profits beat forecasts and
operational results from ING <ING.AS> pleased investors.
                                
 The pan-European FTSEurofirst 300 <.FTEU3> index of top
shares closed up 1.3 percent at 1,015.10 points. The index which
gained nearly 26 percent in 2009 is down around 3 percent this
year.
                                
 "Markets have really warmed to the bank results. If their
results improve it does help confidence as people associate
financial stability with banks," said Mike Lenhoff, strategist
at Brewin Dolphin.
                                
 "I think the markets were also in a position to rebound as
they were looking a touch oversold a few days back. It was a
matter of what catalyst would come along to induce the rebound."
                                
 France's biggest listed bank BNP Paribas rose 3.9 percent
after it took fewer bad debt provisions than expected in the
fourth quarter, helping it beat profit forecasts, and said these
charges would be lower again in 2010. [ID:nLDE61F296]
                                
 HSBC <HSBA.L>, Barclays <BARC.L>, Banco Santander <SAN.MC>
and Societe Generale <SOGN.PA> gained 1.5 to 2.9 percent.
                                
 Dutch bank and insurance group ING rose 5.6 percent
recovering from earlier falls after analysts said it was
attractively valued compared to its book value and its
operational results were not disappointing.
                                
 Other insurers were in demand. Legal & General <LGEN.L> was
up 2.7 percent after it more than doubled its closely-watched
cash generation in 2009, beating its own target. [ID:nLDE61E1DF]
                                
 
                                
 DRUGMAKERS IN FAVOUR
                                
 Drugmakers were also in favour. Spanish plasma firm Grifols
<GRLS.MC> was 4.9 percent higher as Australian peer CSL <CSL.AX>
reiterated its full-year profit forecast after solid first-half
results.
                                
 Novartis <NOVN.VX>, Roche <ROG.VX> and GlaxoSmithKline
<GSK.L> were up 0.3 to 1.3 percent.
                                
 Volkswagen <VOWG_p.DE> gained 4.4 percent after traders
pointed to speculation that shares of the company's planned
capital hike are already placed with investors.
                                
 In economic news, U.S. housing starts rebounded more
strongly than expected to their highest level in six months in
January, while permits fell slightly less than forecast, a
government report showed. [ID:nN16228624]
                                
 On the downside, Swiss medical device maker Synthes
<SYST.VX> fell 7.4 percent after it said revenue growth is
likely to remain in single digits this year as hospitals cut
costs. [ID:nLDE61G07T]
                                
 "Although Synthes bottom line result beat expectations, we
think that the slowing top line growth, the cautious outlook and
the lack of quantitative guidance will disappoint the market,"
Sarasin said in a note.
                                
 Across Europe, the FTSE 100 <.FTSE> index was up 0.6
percent, Germany's DAX <.GDAXI> gained 1 percent and France's
CAC 40 <.FCHI> was 1.5 percent higher.
 (Editing by Sharon Lindores)