* FTSEurofirst 300 ends up 0.6 pct, at 18-month closing high
* Tech shares rally after Intel's stellar results
* Banks climb after forecast-beating earnings from JPMorgan
* For up-to-the-minute market news, click on []
By Blaise Robinson
PARIS, April 14 (Reuters) - European stocks hit an 18-month
closing high on Wednesday, as forecast-beating results from
JPMorgan <JPM.N> and Intel <INTC.O> and solid U.S. retail sales
brightened the prospect for economic recovery.
The FTSEurofirst 300 <> index of top European shares
closed 0.6 percent higher at 1,105.32 points, reversing a
two-session losing run.
Tech stocks made strong gains after Intel, the world's top
chip maker, posted better than expected quarterly results.
STMicroelectronics <STM.PA> rose 2.7 percent and Infineon
<IFXGn.DE> gained 2.8 percent.
"The mood in European stock markets has turned better and
better during the course of the day," said Kim Saugsted, senior
investment adviser at pan-Nordic bank Nordea in Copenhagen. "The
reason behind the good mood is that the U.S. corporate earnings
reporting season has gotten off to a good start."
Banking stocks also led the broad rally, with UBS <UBSN.VX>
rising 2.4 percent, Deutsche Bank <DBKGn.DE> up 3.1 percent and
BNP Paribas <BNP.PA> up 1.6 percent.
JPMorgan posted a quarterly profit that topped analysts'
forecasts as revenue from its investment bank eclipsed losses on
consumer loans. []
"The largest positive surprise in the report is that the
consumer credit trends ... showed improvement in delinquencies
-- this will spur the sentiment running in the market that the
U.S. economy is on its way to recovery," said Christian Tegllund
Blaabjerg, head of equity strategy at Saxo Bank in Copenhagen.
BERNANKE DOVISH
Positive news also came from the macro side, with sales at
U.S. retailers in March rising 1.6 percent, versus a forecast of
a 1.2 percent increase. Separately, consumer prices were up 0.1
percent, matching expectations, giving the U.S. Federal Reserve
some leeway to keep ultra-low interest rates. []
Fed Chairman Ben Bernanke said on Wednesday the U.S. economy
is still being weighed down by weakness in the construction
sector and battered state and city budgets.
In the prepared text of his congressional testimony,
Bernanke did not directly refer to the near-term outlook for
benchmark interest rates or the U.S. central bank's vow to keep
them low for an "extended period." []
"The chairman acknowledged the exceptionally strong pace of
GDP growth in Q4 but said much of this gain reflected a
realignment of inventories as well as fiscal stimulus," Nomura
economists wrote in a note.
In Europe interest rate hikes might not come before 2011,
according to a Reuters poll published on Wednesday.
Results of the survey show the euro zone economy will grow
more slowly than previously thought this year, forcing the
European Central Bank to hold interest rates down, but the
chances of the 16-nation bloc breaking up are seen as slim.
[]
Around Europe, UK's FTSE 100 index <> gained 0.6
percent, Germany's DAX index <> rose 0.8 percent, and
France's CAC 40 <> added 0.6 percent.
Shares in Danish shipping and oil group A.P. Moller-Maersk
<MAERSKb.CO> rose 5.9 percent, lifted by positive economic data
from Singapore, which sent an Asian rival's stock to 20-month
highs.
"Developments in Singapore and all of Asia are important for
A.P. Moller-Maersk and other container shipping lines," said Ole
Jensen, head of equities at Sydbank.
Greece's debt worries were back in investors' minds on
Wednesday, after a Moody's analyst said the country is still
more likely than not to suffer a ratings downgrade over the next
18 months despite the cushion of an EU safety net, though the
analyst said the risk of default is low. []
National Bank of Greece <NBGr.AT> dropped 4 percent and
Alpha Bank <ACBr.AT> shed 4.9 percent.
(Additional reporting by Peter Starck in Copenhagen; Editing by
Greg Mahlich)
