Banks, miners lift Europe stocks as Lonmin surges

                                
 * Pan-European FTSEurofirst 300 index rises 0.5 percent
                                
 * Banks and miners top gainers on reassuring results, M&A
                                
 * Lonmin surges 48 percent on takeover bid
                                
 
                                
 By Sitaraman Shankar
                                
 LONDON, Aug 6 (Reuters) - European shares tracked global
equities higher early on Wednesday, spurred by a $10 billion
takeover bid in the mining sector and forecast-beating results
from French bank BNP Paribas <BNPP.PA>.
                                
 At 0839 GMT, the FTSEurofirst 300 <.FTEU3> index of top
European shares was up 0.6 percent at 1,189.22 points, led by
banks and miners and adding to Tuesday's juicy 2.6 percent gain.
                                
 BNP Paribas jumped 5.3 percent after results pleased
investors, though Germany's Commerzbank <CBKG.DE> gave up early
gains to slip 1.3 percent despite beating forecasts as analysts
pointed to management caution about the bank's targets.
                                
 Banks added most points to the pan-European benchmark as a
sector, with UBS <UBSN.VX> up 3 percent, Societe Generale
<SOGN.PA> up 2.6 percent and Fortis <FOR.AS> up 1.9 percent.
                                
 Miners rose strongly, lifted by news of a $10 billion bid by
Xstrata <XTA.L> for Lonmin <LMI.L>. Lonmin, which rejected the
bid, soared 47 percent, Xstrata gained 1.4 percent and seven of
the top 10 gainers on Britain's FTSE 100 <.FTSE> were mining
stocks.
                                
 The U.S. Federal Reserve kept interest rates steady on
Tuesday and signalled no rate rises were likely for now, lifting
stocks on Wall Street. Asian shares rebounded from a three-day
losing streak.
                                
 Oil <CLc1> ticked up slightly but was still shy of $120 a
barrel and nearly 20 percent off an all-time high of $147 struck
on July 11.
                                
 "Investor angst has turned to optimism quickly, and there's
a feeling that things will be okay and we can move on," said
Heinz-Gerd Sonnenschein, strategist at Postbank in Bonn,
Germany.
                                
 "But there is still a squeeze on company margins due to
commodity and energy prices, and PPIs are rising faster than
CPIs, indicating that companies are struggling to pass on cost
increases."
                                
 Britain's FTSE <.FTSE> was up 0.6 percent, Germany's DAX
<.GDAXI> up 0.5 percent and France's CAC <.FCHI> up 1 percent.
                                
 
                                
 CENTRAL BANK WEEK
                                
 As far as central bank rate decisions go, investor focus now
shifts to the European Central Bank and the Bank of England on
Thursday.
                                
 Both banks are expected to keep rates unchanged, and a fall
in commodity prices could relieve some inflationary pressure.
                                
 Sonnenschein said Postbank expected euro zone inflation to
moderate to 2.6 percent next year from a projection of 4 percent
in 2008 and growth to slow to 1.4 percent from a projection of
1.6 percent this year.
                                
 "In 12 months, we see the oil price below $100, a trigger
for inflation to come down," he said.
                                
 Reuters polls show that UK interest rates are not expected
to fall until early 2009 and the ECB will hold rates steady well
into the next year.
                                
 Dutch postal group TNT <TNT.AS> jumped 6.7 percent on market
talk of an imminent bid for the group. TNT said it did not
comment on market rumours.
                                
 Stock exchange operator Deutsche Boerse <DB1Gn.DE> jumped
4.3 percent as traders said Goldman Sachs had started coverage
with a "buy" rating.
 (Editing by Paul Bolding)