* FTSEurofirst 300 gains 0.58 pct
* Banks, beverages lead after SocGen, Carlsberg
* Investor focus on Fed rate decision
By Amanda Cooper
LONDON, Aug 5 (Reuters) - European shares rose on Tuesday as
banks were buoyed by results from Societe Generale <SOGN.PA>,
outweighing declines in energy and mining shares.
Banks were the top performers in Europe, followed by the
beverages sector after strong results from Danish brewer
Carslberg <CARLb.CO>.
SocGen was among the top positive influences on the broader
market, rising 2.5 percent after the French bank reported a 63
percent drop in second-quarter net profit, a smaller decline
than analysts had expected.
Most banks were higher. Credit Agricole <CAGR.PA> gained 2.1
percent, Barclays <BARC.L> gained 1.8 percent and Royal Bank of
Scotland <RBS.L> rose 1.5 percent.
At 0800 GMT, the FTSEurofirst 300 index <> of top
European shares was up 0.58 percent at 1,159.19 points, having
fallen by 1 percent the day before. Rising stocks outnumbered
decliners by about three to one on the index.
Investors' focus will turn to the interest rate decision by
the U.S. Federal Reserve, due after the European market close,
in which the bank is expected to leave rates at 2 percent.
"You have bits and pieces on individual stocks, but I think
sentiment for the market in general is pretty much laid back
ahead of the (Fed) meeting, particularly after what we saw with
the PCE data yesterday ... That certainly might increase the
risk of hawkish talk resuming or strengthening, which is not
good," said Heino Ruland, a strategist with FrankfurtFinanz.
The FTSEurofirst has fallen about 23 percent so far this
year, led in large part by concern about mounting inflation in
the face of near-record fuel and food prices, as well as the
ongoing impact of the credit crunch on financial institutions.
Ruland said further selling could be on the way.
"The last round of selling (in the broader market) is
missing. It needs to be stressed this year's earnings are going
to fall. Analysts are slowly pricing in a decline this year," he
said.
CENTRAL BANK JUGGLING
The Fed, like the European Central Bank and the Bank of
England, which deliver their rate decisions this week, must
juggle slowing economic growth with stubbornly high inflation.
"The Fed is widely expected to leave rates on hold, but
there is the risk of a second dissenter who would like to see
higher interest rates. Little change is likely in the
accompanying statement, suggesting no pre-determined path for
rates," said ING in a note.
Data due later from the U.S. services sector for July at
1400 GMT could offer further evidence of the resilience of the
world's largest economy.
Among the banks, shares in Barclays <BARC.L> rose 3 percent
after Swiss Re <RUKN.VX>, the world's largest reinsurer, agreed
to buy Barclays' life assurance arm for 753 million pounds in
cash ($1.48 billion) to boost its Admin Re business in the UK.
Shares in Swiss Re were down 0.2 percent.
The DJ Stoxx index of European banking shares <.SX7P> was up
1.3 percent after two straight days of declines.
Shares in British insurer Legal & General <LGEN.L> rose by
7.3 percent after the company delivered results.
Other stocks on the rise included Danish brewer Carlsberg,
which was the top percentage gainer in Europe, rising by nearly
10 percent after the company posted a larger-than-expected 68
percent rise in second-quarter operating profit on strong Asian
and eastern European growth, despite rising raw material prices.
Carlsberg, which bought Scottish & Newcastle (S&N) for 7.8
billion pounds ($15.35 billion) with Dutch peer Heineken
<HEIN.AS>, said it saw 2008 operating profit growing organically
to around 5.9 billion crowns.
Heineken shares were up 2.7 percent, while the DJStoxx index
of food and beverage stocks <.SX3P> was up 0.9 percent.
Among decliners, Rio Tinto <RIO.L> and BHP Billiton <BLT.L>
were both down around 2.7 percent, as gold <XAU=> fell below
$900 an ounce, platinum <XPT=> hit six-month lows, and base
metal prices also fell.
In the energy sector, BP <BP.L> was down 2.5 percent and
StatoilHydro <STL.OL> and Total <TOTF.PA> lost 2.2-3.8 percent.
Nivea cream maker Beiersdorf <BEIG.DE> fell 7 percent after
reporting a 47 percent rise in second-quarter operating profit.
The company's chief executive said Beiersdorf would have to
increase prices significantly in 2009 as costs rise and he saw
sluggish business development in Western Europe, outside of
Germany and Britain, in the second quarter.
(Editing by Will Waterman)
