* FTSEurofirst 300 <> rises 1.3 percent
* Swiss banks, trading for first time in 2009, surge
* Oils gain on strong crude price
* Autos hit by dismal Japanese car sales, ahead of U.S. data
By Brian Gorman
LONDON, Jan 5 (Reuters) - European shares gained in early
trade on Monday, with Swiss banks higher and U.S.
President-elect Barack Obama's plans for tax cuts fuelling
optimism.
At 0944 GMT, the FTSEurofirst 300 <> index of top
European shares was up 1.3 percent at 868.12 points.
On Friday, the first trading day of 2009, the index rose 3
percent, but it lost more than 44 percent in 2008, hit by a
credit crisis that helped tip many major economies into
recession.
"Expectations that Obama will come in with a big stimulus
package are helping," said Bernard McAlinden, investment
strategist at NCB Stockbrokers.
"The market is looking for any signs that some of the
forward-looking indicators, like PMIs, have bottomed."
Most banks rose, led by those in Switzerland, where the
stock exchange re-opened after the New Year Holiday.
Credit Suisse <CSGN.VX> and UBS <UBSN.VX> rose 8.3 percent
and 5.9 percent respectively, with both continuing to benefit
from recent sales of businesses.
However, HSBC <HSBA.L> fell 1.3 percent after Deutsche Bank
cut its target to 650 pence, from 685.
Crude oil futures <CLc1> retained recent gains and traded
above $46 a barrel, amid further tension in the Middle East.
Total <TOTF.PA>, BP <BP.L>, Royal Dutch Shell <RDSa.L>, BG
<BG.L> and Statoil <STL.OL> rose between 0.7 and 3.4 percent.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC-40 <> rose between 0.4 and 0.7
percent.
CARMAKERS FALL
The auto sector was one of only a handful in the red, hit by
Japan's dismal monthly auto sales. Renault <RENA.PA>, which has
a big stake in Nissan <7201.T>, fell 4.9 percent, also hammered
after Citigroup cut its rating on the stock to "sell" from
"hold".
Daimler <DAIGn.DE>, Peugeot <PEUP.PA>, Porsche <PSHG_p.DE>,
and Volkswagen <VOWG.DE> were down between 0.9 and 2.3 percent.
Monthly vehicle sales data from the United States was due later
on Monday.
UK retailers rose, amid expectations that updates covering
the vital Christmas period, due this week, may not be quite as
bad as feared.
Marks & Spencer <MKS.L> rose 5 percent; Next <NXT.L> gained
2 percent.
The FTSEurofirst 300 index was rising for a fifth
consecutive session, having gained 6.6 percent last week, in
thin volumes.
"It would be better if it were on bigger volumes, but a
rising market is a rising market," said McAlinden.
On Thursday, the Bank of England is expected to cut interest
rates, in an effort to mitigate the extent of the recession in
the UK. The base rate, at 2 percent, is already at its lowest
since the Bank was founded in 1694. The BoE will cut by 50 basis
points to 1.5 percent, according to a Reuters survey.
"I wouldn't be surprised if they go down to 1 percent," said
McAlinden.
In the United States, futures for the Dow Jones <DJc1>, S&P
500 <SPc1> and Nasdaq <NDc1> were mixed, with shares having
started the New Year strongly on Friday.
Obama, seeking to drum up support from both political
parties, plans to propose up to $310 billion in tax cuts for
businesses and the middle class as part of his massive economic
stimulus package, senior Democratic aides said on Sunday.
[]
(Reporting by Brian Gorman)
