* FTSEurofirst 300 rises 1.2 percent
* Financials jump after U.S. stress test results
* Energy, mining shares track higher commodity prices
By Atul Prakash
LONDON, May 8 (Reuters) - European shares climbed in early
trade on Friday as financial stocks advanced after the results
of stress tests on U.S. banks showed no nasty surprises, while
commodities tracked higher crude and metals prices.
At 0758 GMT, the FTSEurofirst 300 <> index of top
European shares was up 1.2 percent at 861.50 points. The index
closed 0.8 percent lower in the previous session after hitting a
four-month high of 878.08.
Royal Bank of Scotland <RBS.L> surged 13.5 percent. The
part-nationalised lender fell to a small first-quarter loss
after bad debts quadrupled and it took another 2.1 billion pound
($3.2 billion) writedown on risky assets, but traders said the
results contained no surprises.
Commerzbank <CBKG.DE> rose 3.7 percent after it unveiled a
revamped board structure and restructuring programme, and
reported a bigger-than-expected net loss. []
Other banks were also up, with Lloyds <LLOY.L> rising 5.8
percent, BNP Paribas <BNPP.PA> up 3.8 percent, Natixis <CNAT.PA>
gaining 4.3 percent and Deutsche Bank <DBKGn.DE> advancing 3.7
percent.
Investors breathed a sigh of relief after the results of
stress tests, which were not as bad as expected, and looked
ahead to U.S. employment data that may offer further hope the
global slump is bottoming out.
U.S. regulators ordered top banks to raise nearly $75
billion in capital -- a sum analysts see as relatively modest --
to bolster their ability to withstand further shocks to the
financial system. []
"This (stress test results) could be seen by many as the
last hurdle for the markets to continue their stellar bull run,"
said Chris Hossain, senior sales manager at ODL Securities Ltd.
"These requests for more cash are only for worst case
scenarios -- whilst it might still be too early to call the end
of the recession, the first quarter appears to have seen credit
markets easing and confidence returning."
Sentiment also improved after German exports unexpectedly
rose for the first time in six months in March, preliminary
Federal Statistics Office figures showed. []
The International Monetary Fund said recent economic data
from China was "very encouraging" but more data for the months
ahead was needed to determine whether the rebound was
sustainable.
COMMODITIES GAIN
Miners tracked metals prices, with copper jumping 2.5
percent, nickel up 2.6 percent and zinc gaining 1.5 percent. 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 0.9 and 4.8 percent.
A 1.6 percent rise in crude oil <CLc1> prices supported
energy stocks. BP <BP.L>, Royal Dutch Shell <RDSb.L>, BG Group
<BG.L>, Tullow Oil <TLW.L>, Repsol <REP.MC>, Total <TOTF.PA>
and StatoilHydro <STL.OL> added between 1.0 and 3.6 percent.
Spanish oil major Repsol <REP.MC> rose 1.9 percent after it
posted clean operating profit at current cost of supply of 746
million euros, beating estimates for 698 million euros from a
Reuters poll of eight analysts.
However, Spain's Endesa <ELE.MC> fell 0.9 percent after the
company said its net quarterly profit fell 23 percent. Its
earnings before interest, taxes, depreciation and amortization
(EBITDA) rose 6 percent to 1.7 billion euros ($2.3 billion) from
1.6 billion a year earlier.
Investors awaited U.S. jobs data, due out at 1230 GMT.
Economists polled by Reuters are expecting to hear that 590,000
jobs were lost in the United States in April compared with a
loss of 663,000 in the previous month.
Across Europe, the FTSE 100 index <>, Germany's DAX
<> and France's CAC 40 <> were between 1.1 and 1.5
percent.
(Editing by Karen Foster)
