* FTSEurofirst 300 up 0.9 pct; snaps 4-day losing run
* Financials among top gainers; commods advance
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, June 28 (Reuters) - European shares bounced back in
morning trade on Monday, snapping a four-session losing run,
with financials featuring among the gainers as the G20 countries
agreed to allow more time for banks to adopt new capital rules.
At 0900 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.9 percent at 1,022.84 points after
falling 0.7 percent in the previous session.
Banks were among the top risers, with Barclays <BARC.L>,
Lloyds <LLOY.L> and BNP Paribas <BNPP.PA> gaining 1.1 to 1.7
percent.
But Standard Chartered <STAN.L> fell 1.2 percent after it
said recent economic uncertainty had hurt business, taking the
shine off a strong first-half performance as its key Asian
markets fared better than the west and it grabbed market share.
Analysts said the stock market was expected to remain
volatile and investors were extremely cautious in trading.
"We are in a holding pattern. The market certainly waits to
see what impact does fiscal tightening have on the economy.
People are definitely cautious," said Peter Dixon, economist at
Commerzbank.
"We are not out of the woods on this," he said, referring to
the conclusions of the weekend meeting of G20 leaders in
Toronto.
"There is still some possibility that further down the line
we are going to come up with much more stringent rules, such as
the absolute size of the banks, which will put a brake on the
ability of bigger banks to leverage their balance sheets the way
they have done."
G20 countries agreed on Sunday to take different paths for
cutting budget deficits and making their banking systems safer,
a reflection of the uneven and fragile economic recovery in many
countries. []
In a reversal from the unity of the past three crisis-era
Group of 20 summits, the leaders left room to move at their own
pace and adopt "differentiated and tailored" policies.
"There are some legitimate doubts. Government finances in
most of the mature economies are really in trouble, so we have
to do something about that. But it will probably pressure
growth," said Luc Van Hecka, chief economist at KBC Securities.
COMMODITIES UP
Energy shares also advanced after losses in the recent
sessions as crude oil <CLc1> touched its highest in almost eight
weeks, trading near $79 a barrel as tropical storm Alex forced
Mexico to slow oil exports and some offshore U.S. producers to
evacuate platforms and curb output.
BP <BP.L>, Royal Dutch Shell <RDSa.L>, Tullow Oil <TLW.L>,
Repsol <REP.MC> and StatoilHydro <STL.OL> rose 0.8 to 4 percent.
Miners were also in demand as gold <XAU=> prices edged
higher to trade near last week's record highs. BHP Billiton
<BLT.L>, Anglo American <AAL.L>, Antofagasta <ANTO.L>, Rio Tinto
<RIO.L>, Xstrata <XTA.L> and Eurasian Natural Resources <ENRC.L>
gained 1.4 to 2.5 percent.
Shares in German chipmaker Infineon <IFXGn.DE> were up 3.6
percent. Financial Times Deutschland newspaper reported that the
Russian government was urging Germany to let holding company
Sistema <SSAq.L> take a 29 percent stake.
Across Europe, the FTSE 100 <>, Germany's DAX <>
and France's CAC 40 <> rose 0.6 to 1.1 percent. The Thomson
Reuters Peripheral Eurozone Countries Index <.TRXFLDPIPU> was up
0.8 percent.
(Editing by Greg Mahlich)
