* FTSEurofirst 300 rises 3.5 percent
* But index falls 11.8 percent in first quarter
* Miners gain on metals prices; banks rebound
By Brian Gorman
LONDON, March 31 (Reuters) - European shares closed higher
on Tuesday, with miners gaining on stronger metals prices and
heavyweight banks recovering ground lost on Monday.
The pan-European FTSEurofirst 300 <> index of top
shares rose 3.5 percent to close at 733.69 points, following a
3.9 percent fall on Monday.
The index rose 2 percent in March, but fell 11.8 percent in
the first quarter of 2009, hurt by a banking crisis and several
major economies in recession.
The index has risen 13.7 percent since reaching a lifetime
low on March 9.
Wall Street also bounced on Tuesday, despite further
evidence of the deep recession.
As European bourses were closing, the Dow Jones <>, S&P
500 <.SPX> and Nasdaq Composite <> were up between 1.5 and
1.7 percent.
U.S. consumer confidence rose slightly in March but remained
near record lows, while business activity in the Midwest shrank
at the most severe rate since 1980. []
[]
Analysts are still wary of forecasting a sustained rally for
European shares.
"We still need to see better economic news before things
pick up," said Robin Evans, global strategist at Fox-Pitt,
Kelton, in London. "There are hopes the background will improve.
No one's expecting much from the G-20 meeting but you never know
your luck.
"The U.S. consumer confidence figures were poor, but they
don't have a very good track record as an indicator. The PMI
tomorrow is more important."
Banks to rise included BNP Paribas <BNPP.PA>, Credit Suisse
<CSGN.VX>, HSBC <HSBA.L>, Lloyds <LLOY.L>, and UBS <UBSN.VX>, up
between 5.5 and 9.1 percent.
Fortis NV <FOR.BR> rose 2.9 percent after saying it has a
viable future as an insurance group after plunging to a 28
billion euro ($37 billion) net loss in 2008 on the state
takeover of its troubled banking activities. []
Deutsche Boerse <DB1Gn.DE> rose 9.4 percent after hedge
funds TCI and Atticus released their grip, ending a pact as
co-owners which industry watchers said was intended to force the
break-up of the stock exchange group. []
MINERS RISE
Miners performed well as copper <MCU3=LX> gained 3.7
percent. Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP
Billiton <BLT.L> and Xstrata <XTA.L> rose between 5.4 and 9.8
percent.
Energy stocks were higher as crude <CLc1> held steady at
$48.45 a barrel. Total <TOTF.PA>, ENI <ENI.MI>, BP <BP.L> and
Repsol <REP.MC> rose between 2.6 and 4.2 percent.
Drugmakers were higher with Novartis <NOVN.VX> up 3.3
percent after U.S. regulators approved its Afinitor medicine for
use in advanced kidney cancer and the Swiss drugmaker said it
expects blockbuster sales. []
GlaxoSmithKline <GSK.L> closed 4.6 percent higher after
striking a deal to co-promote Shire's <SHP.L> hyperactivity
medicine Vyvanse in the U.S. Shire rose 8.5 percent.
[].
But Novo Nordisk <NOVOb.CO> fell 4.8 percent after U.S. Food
and Drug Administration staff raised questions about the safety
profile of its key new diabetes drug Victoza, or liraglutide,
including the risk of thyroid tumours.
Marks & Spencer <MKS.L> soared 11.9 percent after posting a
smaller-than-expected fall in underlying fourth-quarter sales,
raising hopes the landmark British retailer was finally getting
to grips with its problems despite a tough trading outlook.
[]
Fiat <FIA.MI> rose 10.3 percent after reaching a global
alliance agreement with Chrysler that has the support of the
U.S. Treasury.
Across Europe, the FTSE 100 <> index closed up 4.3
percent. Germany's DAX <> and France's CAC 40 <> rose
2.4 and 3.2 percent respectively.
(Additional reporting by Joanne Frearson; Editing by Hans
Peters)
