* FTSEurofirst 300 rises 0.3 percent
* Ifo lends support
* Energy and financials top gainers
* Eyes on U.S. earnings, durable goods orders
By Peter Starck
FRANKFURT, April 24 (Reuters) - European shares rose in
morning trade on Friday, led by energy and financial stocks, but
Volvo <VOLVb.ST> fell sharply after the No.2 truck maker
reported a bigger-than-expected first-quarter loss.
At 0915 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.3 percent at 794.37 points.
Europe's stock markets were buoyed by Wall Street's higher
close on Thursday [] and by a
stronger-than-expected April reading for the Ifo indicator of
corporate sentiment in Germany, Europe's biggest economy and the
world's top exporter. []
"Again overnight we got quite supportive figures from the
U.S.," said UniCredit equity strategist Tammo Greetfeld.
"The Ifo numbers are quite supportive for the market and are
paving the way for some moderation of the downward earnings
revisions over the coming months," he said.
Oil and gas stocks <.SXEP> added most points to the European
benchmark index as the crude oil price strengthened over 0.5
percent to almost $50 a barrel.
ENI <ENI.MI>, which reported a smaller-than-expected fall in
first-quarter profits, was up 3.9 percent, Total <TOTF.PA> put
on 2.5 percent, BP <BP.L> traded 1.8 percent higher and Royal
Dutch Shell <RDSa.L> gained 1.7 percent.
Among financials, Credit Suisse <CSGN.VX> was up 3.5
percent, BNP Paribas <BNPP.PA> added 3.0 percent and Barclays
<BARC.L> rose 2.7 percent.
Cazenove on Friday upgraded its recommendation on Credit
Suisse to "in-line" after the Swiss bank's better than expected
quarterly earnings on Thursday.
It said in a note: "Many competitors have fared worse and
the perception of Credit Suisse's 'fortress' balance sheet is
benefiting both the Wealth Management and Investment Banking
businesses."
Underpinning Wall Street on Thursday were earnings from some
big U.S. regional banks, including PNC Financial Services Group
Inc <PNC.N> and Fifth Third Bancorp <FITB.O>, which provided
some glimmers of hope.
AMEX JUMPS
Shares in American Express <AXP.N> rose as much as 6 percent
in extended trading on Thursday after the credit card company
reported better-than-expected earnings as it slashed costs and
said it intended to repay government bailout funds as soon as
regulators allow. []
"Overall the development in earnings is not as bad as
feared," said UniCredit's Greetfeld.
Outside financials, Nokia <NOK1V.HE> fell 5.5 percent as the
mobile-phone maker traded ex-dividend. The DJ Stoxx technology
index <.SX8P> was the leading sectoral loser, down 2.4 percent.
Volvo fell 4.1 percent after the company reported a
first-quarter operating loss that was deeper than expected and
cut its market outlook, forecasting a huge contraction in demand
on both sides of the Atlantic.
"These results highlight the rapid deterioration in all
(Volvo's) end markets and further downgrades to market forecasts
highlight no upturn in sight," S&P Equity Research analyst
Marnie Cohen said.
"These results are a disappointing wake up call, not least
the balance sheet deterioration," said Cohen, who rates the
stock "sell".
Shares in Volvo's Swedish rival Scania <SCVb.ST> fell 1.7
percent.
At its late morning levels, the FTSEurofirst 300 index is
headed for a loss of just over 2 percent for the week.
"The general feeling is that the market has begun its
correction following the recent rally -- the real key will be
how far the market actually pulls back," IG Markets said in a
note.
The benchmark index rose 26 percent between March 9 and
April 17. The DJ Stoxx banks index <.SX7P> gained 88 percent in
the same period.
"It is open to question whether the stock markets still have
strong upside potential after the gains seen in recent weeks. We
think a distinct correction, especially in bank shares, is more
likely," LandesBank Berlin said in a research note.
The focus later in the day will be on U.S. corporate
earnings from such companies as Ford <F.N> and 3M <MMM.N>, and
on economic data, particularly for U.S. durable goods orders,
which will be released at 1230 GMT.
(Editing by Karen Foster)
