European shares lifted early by banks, Bernanke

                                
 * FTSEurofirst 300 up 1.1 percent
                                
 * Banks lead gainers, boosted by Bernanke statements
                                
 * Pharmaceutical stocks down, led by Novartis
                                
 
                                
 By Christoph Steitz
                                
 FRANKFURT, Feb 25 (Reuters) - European shares rose early on
on Wednesday to snap a three-day losing streak as financials
surged, tracking advances on Wall Street after the Federal
Reserve signalled that bank nationalisations were not imminent.
                                
 At 1025 GMT the FTSEurofirst 300 <.FTEU3> index of top
European shares was up 1.1 percent at 727.35 points, after it
had fallen 1.4 percent on Tuesday to a six-year low. The index
has fallen 12.6 percent so far this year.
                                
 The broader STOXX 600 <.STOXX> index rose 1.3 percent, led
by banks and oil stocks.
                                
 U.S. stocks had risen late Tuesday, recovering from a
12-year low, after Federal Reserve Chairman Ben Bernanke
signalled that nationalisation of big banks was not at hand,
causing relief in the markets. [ID:nN24435256]
                                
 In addition, U.S. President Barack Obama's speech before
Congress improved sentiment among investors, despite a backdrop
of grim economic data around the world.
                                
 "The remarks by Bernanke and Obama have allayed investors'
fears about what a nationalisation of banks might mean to them
-- namely a plunging share price," said Heinz-Gerd Sonnenschein,
equity strategist at Postbank in Germany.
                                
 Financials were among the biggest gainers in Europe, with
Deutsche Bank <DBKGn.DE>, BNP Paribas <BNPP.PA> and UBS
<UBSN.VX> up between 6.6 and 8.3 percent.
                                
 The DJ Stoxx European banks sector index <.SX7P> was the
strongest sectoral gainer, up 4.2 percent, and has fallen 25.2
percent since the beginning of the year.
                                
 Around Europe, UK's FTSE 100 index <.FTSE> rose 0.9 percent,
Germany's DAX index <.GDAXI> was up 1.2 percent and France's CAC
40 <.FCHI> was up 1.1 percent.
                                
 
                                
 BOERSE RISES
                                
 Deutsche Boerse <DB1Gn.DE> rose 5.8 percent, after the
German stock exchange operator released solid results late
Tuesday. [ID:nLO491553]
                                
 "We think the company (Deutsche Boerse) will try to show a
stable dividend throughout the crisis, which is positive and
could be possible in our view," DZ Bank said.
                                
 Shares in British confectionery giant Cadbury Plc <CBRY.L>
also rose, and were up 3.1 percent, after the company reported a
30 percent rise in 2008 profits [ID:nLN622213]
                                
 Pharma stocks dropped, with the DJ Stoxx health care index
<.SXDP> the biggest sectoral decliner, dragged down by
heavyweight Novartis <NOVN.VX>, after the Swiss company said
first-quarter results would be hit by foreign exchange
movements. [ID:nLP349794] Shares in the company were down 3.4
percent.
                                
 Utilities were also down, with GDF Suez <GSZ.PA>, EDF
<EDF.PA> and EDP Renovaveis <EDPR.LS> and Gas Natural <GAS.MC>
down between 0.3 and 0.9 percent.
 (Editing by Greg Mahlich)