* FTSEurofirst 300 index closes up 1.3 percent
* Financials gain; Allianz, ING rises on results
* Deutsche Telekom gains after solid earnings
* For up-to-the minute market news, click on []
By Joanne Frearson
LONDON, May 12 (Reuters) - European shares gained on
Wednesday, as encouraging results from financials, such as
Allianz <ALVG.DE> and ING Groep <ING.AS>, and Spain's plan to
cuts its deficit lifted investor sentiment.
The pan-European FTSEurofirst 300 <> index of top
shares closed up 1.3 percent at 1,048.56 points. The index is
now up 0.3 percent for the year, having dipped into negative
territory in early May on euro-zone sovereign debt concerns.
Financials were among the top gainers. Germany's Allianz
jumped 3.4 percent after net first-quarter profit more than
tripled, while Dutch bancassurer ING Groep gained 4.2 percent
after first-quarter earnings beat estimates.
"Earnings results have also been very good and fundamentally
that is a key support for these markets," said Mike Lenhoff,
chief strategist at Brewin Dolphin.
"It is quite interesting that Spain has now followed through
to cut its budget deficit. I guess the view is if Greece can do
it then so can we. That sort of contagion is positive for the
markets."
Investor nervousness about euro-zone sovereign debt problems
were eased after Spanish Prime Minister Jose Luis Rodriguez
Zapatero announced civil service pay and public sector jobs
cuts. []
The measures are designed to bring the country's budget
deficit to 6 percent of gross domestic product in 2011 from 11.2
percent in 2009.
Banks featured among the best performers following falls in
the previous session. BNP Paribas <BNPP.PA>, UBS <UBSN.VX>,
Credit Suisse <CSGN.VX> and Banco Santander <SAN.MC> rose 0.4 to
1.5 percent.
DEUTSCHE TELEKOM GAINS
In individuals stocks, Deutsche Telekom <DTEGn.DE> rose 2.9
percent after the company reported first-quarter results largely
in line with expectations and reiterated its 2010 outlook.
[]
Shipping and oil group A.P. Moller-Maersk <MAERSKb.CO>
soared nearly 9 percent after it raised 2010 profit guidance
after a forecast-beating first quarter driven by recovering
freight rates and higher oil prices. []
However, Aegon <AEGN.AS> fell 1.8 percent after the Dutch
insurance group's first quarter underlying operating profit and
present value of new premium income miss or are in-line with
estimates.
Macroeconomics news was mixed. The euro zone economy grew
only modestly in the first quarter after stalling in the fourth,
a flash estimate showed on Wednesday, but stronger than expected
March industrial output suggested economic activity was picking
up. []
The number of Britons claiming unemployment benefit fell
more than expected in April but the number out of work on the
wider ILO measure rose to its highest since 1994, official data
showed on Wednesday. []
Across Europe, the FTSE 100 <> index was up 0.9 percent
as Conservative leader David Cameron took up the position of
Prime Minister, at the head of a coalition government.
Germany's DAX <> was 2.4 percent higher and France's
CAC 40 <> rose 1.1 percent.
(Reporting by Joanne Frearson; Editing by Louise Heavens)
