* FTSEurofirst 300 rises 0.7 percent
* Banks rise on hopes for delay to regulations
* For up-to-the-minute stocks news, click on []
By Brian Gorman
LONDON, Dec 16 (Reuters) - European shares rose in early
trade on Wednesday, with banks among the strongest performers,
on a report that global regulators are considering delaying the
implementation of new capital rules.
At 0922 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.7 percent at 1,025.82 points.
The heavyweight banking sector added the most points to the
index. BNP Paribas <BNPP.PA>, Banco Santander <SAN.MC>, Barclays
<BARC.L>, Deutsche Bank <DBKGn.DE>, HSBC <HSBA.L> and Societe
Generale <SOGN.PA> rose between 0.4 and 2.5 percent.
Global banking regulators have agreed to establish a
transition of at least 10 years for new capital rules,
effectively delaying their implementation, Japan's Nikkei
business daily reported on Wednesday. []
On Tuesday, the pan-European index edged up 0.02 percent to
register its fourth straight day of gains.
The European benchmark is up more than 58 percent from its
lifetime low of March 9, as investors have seen several major
economies emerge from recession.
Later in the session, investors' attention will turn to the
United States, where data on inflation and housing starts and
permits is due, before the market opens.
"The housing data is likely to show a positive trend but the
concern is about how much of this is due to stimulus packages,
and how much of it is real," said Justin Urquhart-Stewart,
investment director at Seven Investment Management, in London.
"There's a certain amount of short-term party spirit. It's
the judgement of Solomon on when to withdraw the stimulus."
After European markets close, the Federal Reserve is
expected to say it is sticking to its super-loose monetary
policy stance as high unemployment constrains policymakers'
enthusiasm about the economy's recent improvement.
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Oils gained as crude prices <CLc1> rose above $71 a barrel,
even as the dollar reached a 2-1/2 month high against the euro.
Total <TOTF.PA>, BP <BP.L>, BG <BG.L>, Royal Dutch Shell
<RDSa.AS> rose between 0.8 and 1.5 percent.
Across Europe, Britain's FTSE 100 <> was up 0.7
percent; France's CAC40 <> and Germany's DAX <> were
up 0.9 and 0.8 percent respectively.
ZODIAC STARS
Among individual shares, Zodiac Aerospace <ZODC.PA> rose 6.6
percent after the French aerospace supplier's first-quarter
results pleased investors.
AstraZeneca <AZN.L> rose 1.5 percent, after U.S. government
advisers back wider use of its cholesterol fighter, Crestor.
[]
Others in the pharmaceutical sector, which has not enjoyed
the rally from the March lows to the same extent, were also
higher.
GlaxoSmithKline <GSK.L> and Sanofi-Aventis <SASY.PA> rose
1.5 percent.
TUI <TUIGn.DE> rose 6.6 percent after Natixis hiked its
price target in the company to 7 euros from 6 euros, while
Cheuvreux upgraded the stock to "outperform" from
"underperform", a day after the company's nine-month results.
Japan's Nikkei average <> rose 0.9 percent to hit its
highest close in seven weeks on Wednesday, with bank shares
soaring on the report on delay to banking regulations.
U.S. stocks slipped on Tuesday. A higher-than-expected
increase in the overall U.S. Producer Price Index in November
raised concerns the Fed may find it difficult to keep benchmark
rates at their current level near zero.
(Editing by Hans Peters)
