* FTSEurofirst 300 index up 0.3 pct, hits 17-month high
* Lloyds up after says to return to profit in 2010
* 'Quadruple witching' could cause some volatility
* For up-to-the-minute market news, click on []
By Harpreet Bhal
LONDON, March 19 (Reuters) - European shares rose in early
trade on Friday, hitting a 17-month high, with banks led higher
by gains in Lloyds Banking Group <LLOY.L> after the UK lender
said it would return to profitability in 2010.
By 0932 GMT, the pan-European FTSEurofirst 300 <>
index of top shares rose 0.3 percent to 1,073.21 points, after
rising to as high as 1,075.44, a level not seen since October
2008.
The index has gained 1.2 percent so far this week, on track
for the third straight weekly gain.
Banks were higher, led by a 7.8 percent rise in Lloyds
Banking Group as the lender said it would swing back to profit
this year after two years of heavy losses, helped by lower bad
debts and tight cost controls. []
Barclays <BARC.L>, HSBC <HSBA.L>, Societe Generale
<SOGN.PA>, BNP Paribas <BNPP.PA> and Deutsche Bank <DBKGn.DE>
were up 0.3 to 1.9 percent.
"There are no particular dangers out there that are going to
spoil the party. The unexpected and very positive trading
statement from Lloyds... was terrifically encouraging," said
David Buik, senior partner at BGC partners.
"I don't think the (equity) market is due for a particular
correction because the dividends have been reasonable and nobody
wants to buy the bond market if they think yields are going to
go up," he said.
Some volatility could be expected in the market due to
'quadruple witching' on Friday, a day where contracts for stock
index futures, stock index options, stock options and single
stock futures all expire.
Drugmakers were higher, adding to gains from the previous
session, with AstraZeneca <AZN.L>, Sanofi-Aventis <SASY.PA> and
Novartis <NOVN.VX> up 0.3 to 1 percent.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC 40 <> advanced 0.2 to 0.4
percent.
GREEK CONCERNS
Concerns over Greece's debt problems persisted on Friday,
pressuring the euro as traders waited to see if Athens can
secure aid from euro zone members at a summit next week.
The country raised the stakes on Thursday in its quest for
EU help to tackle its debt crisis, saying it cannot achieve
promised deficit cuts if its borrowing costs remain so high and
may have to call in the IMF. []
Among individual risers, Swatch Group <UHR.VX> added 2.3
percent. The world's largest watchmaker is aiming for full-year
sales of more than 6 billion Swiss francs after seeing a 30
percent sales jump in January and February, its chairman was
quoted as saying in an interview. []
Peers LVMH <LVMH.PA> and Richemont <CFR.VX> rose 0.8 and 0.7
percent respectively.
Later in the session, data set for release from the United
States include the Economic Cycle Research Institute's weekly
index at 1430 GMT.
Labor market and consumer prices data on Thursday showed the
U.S. economy is on a moderate growth path and inflation
pressures are contained, backing up the Federal Reserve's vow to
keep benchmark interest rates ultra-low for some time.
(Editing by Hans Peters)
