* FTSEurofirst 300 rises 1.8 pct to 2-month highs
* Markets advance on JPMorgan, Nokia results
* Drugmakers, autos gain on improved sentiment
By Atul Prakash
LONDON, April 16 (Reuters) - European shares hit a two-month
high on Thursday as better-than-expected results from JPMorgan
<JPM.N> and soothing comments from the top cellphone maker Nokia
<NOK1V.HE> calmed jittery investors.
The FTSEurofirst 300 <> index of top European shares
ended up 1.8 percent at 802.02 points, the highest closing level
since Feb. 11.
The index, which plunged 45 percent in 2008, has surged
about 24 percent since hitting a record low on March 9.
"The market continues to find strength from the reporting
season. JPMorgan is the latest in a long list of financials to
come out with better-than-expected results, showing that the
general banking environment is perhaps better than anticipated,"
said Henk Potts, strategist at Barclays Stockbrokers.
"We are getting a much better view in terms of what's
happening at the corporate level ... while it's not positive,
it's certainly not as gloomy as many market participants had
feared," he added.
"JPMorgan was the third U.S. bank to surprise positively and
it seems that the American banks have had a better first quarter
than expected," said Carsten Klude, strategist at M.M. Warburg.
"That is positive for the markets."
JPMorgan said improved investment banking performance offset
increased losses from credit cards and other consumer debt,
helping Barclays <BARC.L> gain 7.7 percent, Lloyds <LLOY.L> 6.7
percent, Natixis <CNAT.PA> 5.7 percent, UBS <UBSN.VX> 5.4
percent and Dexia <DEXI.BR> 15.6 percent.
Nokia shares surged more than 9 percent after the company
said demand was becoming more predictable in the second quarter,
although its first-quarter earnings came in slightly below
market expectations.
DRUGMAKERS, AUTOS GAIN
Sentiment was also boosted by Swiss drugmaker Roche
<ROG.VX>, which brushed off the downturn in the first quarter
and posted a 7 percent rise in sales led by cancer medicine
Avastin, and sounded a confident note for the full year. Its
shares rose 1.8 percent.[]
Other pharmaceutical companies gathered strength, with Shire
<SHP.L> rising 5 percent, Novo Nordisk <NOVOb.CO> up 5.7 percent
and AstraZeneca <AZN.L> gaining 3.4 percent.
The auto sector, which has drawn support from government
through purchase incentives and loans, showed some sign of
recovery in Europe, with March new car registrations down 9
percent, about half the fall seen in the quarter. []
BMW <BMWG.DE>, Daimler AG <DAIGn.DE>, Porsche <PSHG_p.DE>,
Peugeot <PEUP.PA> and Renault <RENA.PA> were up 1.1-3.1 percent.
Miners followed the broader market trend and gained despite
weaker metals prices. BHP Billiton <BLT.L>, Anglo American
<AAL.L>, Antofagasta <ANTO.L>, Rio Tinto <RIO.L>, Xstrata
<STA.L> and Eurasian Natural Resources <ENRC.L> rose between 0.7
percent and 4.6 percent.
CAUTION NEEDED?
But some analysts advised caution as data continued to be
poor and General Growth Properties <GGP.N>, the second-largest
U.S. mall owner, filed for bankruptcy protection in the biggest
real estate failure in U.S. history. []
New U.S. housing starts fell more than expected in March
after a surprise surge the previous month, dealing a blow to
hopes that housing market stability was on the horizon.
[]
"Is it yet another head fake or the real deal?" Citi said in
a strategy note.
"The current rally exhibits more of the hallmarks of 'the
real deal'. But we need to progress further through the earnings
downturn and see better news from the real economy and credit
before we feel confident it is not just another head fake."
Across Europe, the FTSE 100 index <>, Germany's DAX
<> and France's CAC 40 <> were up 1.3-2.1 percent.
(Additional reporting by Peter Starck; Editing by David Cowell)
