* FTSEurofirst 300 up 0.1 percent
* Banks rebound after falling on E. Europe concerns
* SocGen, Commerzbank jump after updates
By Sitaraman Shankar
LONDON, Feb 18 (Reuters) - European shares ticked up early
on Wednesday, breaking a two-day losing run as banks rebounded
from falls in the previous session and investors cheered updates
from Societe Generale <SOGN.PA> and Commerzbank <CBKG.DE>.
At 0849 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.1 percent at 766.33 points, having
fallen 2.5 percent on Tuesday. The index is down 8 percent so
far this year, pulled lower by bank stocks.
Financials came back strongly in morning trade, led by
SocGen, which jumped 3 percent after it posted a fourth-quarter
net profit, raised its dividend and said it key tier-1 ratio was
8.8 percent.
HSBC <HSBA.L>, Santander <SAN.MC> and BNP Paribas <BNPP.PA>
rose 2.3-2.8 percent, ranking among the top-weighted gainers on
the European benchmark after the sector fell sharply on Tuesday
on fears of losses in emerging Europe.
Commerzbank <CBKG.DE> jumped 6 percent after posting a
smaller-than-expected loss in the fourth quarter.
But heavyweight energy stock BP <BP.L> fell 1.7 percent and
miner Rio Tinto <RIO.L> lost 1.9 percent to weigh on the index
as they traded ex-dividend.
Analysts remained wary about any equities recovery.
"For the time being we remain cautious," said Thierry
Lacraz, strategist at Pictet in Geneva.
"The problem is that we don't have any clear answers from
the Obama government regarding the banking rescue package ...
until we have more visibility on the U.S. banks and more
positive wording from companies, it's difficult to see markets
climbing again."
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC <> were up 0.3-0.5 percent.
BEER CHEER
Brewers Heineken <HEIN.AS> and Carlsberg <CARLb.CO> rose 4.6
percent and 7 percent respectively after Heineken reported
earnings slightly below forecasts and Carlsberg came in slightly
above expectations.
The euro rose against the dollar on a technical rebound
after hitting a 2-1/2 month low but the upside was limited due
to ongoing concerns about the banking system and the economy.
Pictet's Lacraz said the euro's weakness was boosting
exports but was being shrugged off by investors.
"The dollar strength is a big help but the more important
point is that it is diminishing the prospects for U.S.
companies, and unfortunately, most people are looking at U.S.
stock markets," he said.
Oil traded down 0.1 percent at below $35 a barrel as demand
concerns continued to weigh, though Total <TOTF.PA> and Royal
Dutch Shell <RDSa.AS> ticked higher, underlining the imperfect
correlation with the oil price.
(Reporting by Sitaraman Shankar)
