* FTSEurofirst 300 up 1.2 pct
* Alcoa's results, Siemens's outlook fuel earnings optimism
* Euro zone debt crisis concerns recede on Portugal comments
By Harpreet Bhal
LONDON, Jan 11 (Reuters) - European shares rose on Tuesday
as a strong start to the U.S. earnings season boosted optimism
about upcoming company results, and reassuring comments from
Portugal soothed nerves over the sovereign debt crisis.
The pan-European FTSEurofirst 300 <> index of top
shares closed up 1.2 percent at 1,147.15 points, hovering near
the highest closing level since mid-September 2008.
Forecast-beating results overnight from U.S. aluminium
company Alcoa <AA.N> set a positive tone for the start of the
corporate earnings season, ahead of the release of results from
Intel <INTC.O> and JPMorgan Chase <JPM.N> later this week.
In Europe, German conglomerate Siemens <SIEGn.DE> rose 3
percent after saying its first-quarter profit and sales were set
to surpass the year-earlier figures on robust factory
demand.[]
"All the leading indicators are pointing towards a positive
earnings season once again," said Lothar Mentel, chief
investment officer at Octopus Investments, adding that markets
could push higher "as long as the positive results are
accompanied by half decent outlooks".
Heavyweight banking stocks rebounded from falls in the
previous three sessions, with HSBC <HSBA.L> and Credit Agricole
<CAGR.PA> both up 2.4 percent following recommendation upgrades
from brokers Citigroup and Societe Generale respectively.
Barclays <BARC.L> rose 5.5 percent as BofA Merrill Lynch
added the stock to its "Most Preferred List" and Societe
Generale said the bank was among its top picks in the European
sector.
Technology stocks were also in demand, led by gains in
Britain's ARM Holdings <ARM.L> which rose 7 percent as bid
speculation circulated around the chip designer.
"ARM is higher again today after last week's news of a
tie-up with both Microsoft and graphics card company Nvidia.
Further bid speculation has also helped the shares rise in price
today," said Michael Hewson, market analyst at CMC Markets.
PORTUGAL AUCTION EYED
Helping calm some nerves over the euro zone debt crisis
ahead of a bond auction on Wednesday, Portuguese Prime Minister
Jose Socrates said Lisbon had no plans to seek aid after what he
said were "excellent" budget execution results for 2010.
[]
Investors also took comfort from news that Japan was
considering buying about 20 percent of euro zone bonds to be
jointly issued later in January to raise funds to support
debt-swamped Ireland.
"The news will surely have a calming effect on bond markets
today," analysts at Commerzbank wrote in a note, adding that
although Asian support may be positive in the short term, it by
no means guarantees restoring investor trust in the market.
On the downside, retailer Marks & Spencer <MKS.L> fell 2.8
percent after saying cold weather hurt Christmas sales, and
warned of tough trading ahead due to squeezed households and
rising commodity prices. []
German retailer Metro AG <MEOG.DE>, which also said snow and
ice hit fourth quarter demand, shed 0.8 percent.
Actelion <ATLN.VX> lost 1.7 percent as the biotech firm
warned after markets closed on Monday that full-year earnings
before tax (EBIT) growth would miss its guided range.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC 40 <> rose 1 to 1.6 percent,
while the Thomson Reuters Thomson Reuters Peripheral Euro Zone
index <.TRXFLDPIPU> added 1.5 percent.
(Editing by Hans Peters)
