* FTSEurofirst 300 closes 2.6 percent higher
* Banks top gainers on easing Dubai worries
* Oils gain as Brent crude nears $80
By Brian Gorman
LONDON, Dec 1 (Reuters) - European stocks notched up their
biggest one-day gain in 4-1/2 months on Tuesday, with banks
rebounding as recent worries about Dubai's debt receded, and
macroeconomic data further boosting sentiment.
The FTSEurofirst 300 <> index of top European shares
closed up 2.6 percent at 1,011.06 points, the biggest one-day
percentage gain since July 15.
Banks added most points to the index, having been hit in
recent days by worries over exposure to Dubai.
Banco Santander <SAN.MC>, Credit Suisse <CSGN.VX>, Deutsche
Bank <DBKGn.DE>, HSBC <HSBA.L>, Standard Chartered <STAN.L> and
UBS <UBSN.VX> rose between 1.9 and 5.2 percent.
Greek banks, hit hard last week on worries over funding,
registered more spectacular gains. EFG Eurobank <EFGr.AT>,
National Bank of Greece <NBGr.AT> and Bank of Piraeus <BOPr.AT>
added 9.6 to 13.3 percent.
"It looks like (Dubai's debt) was a storm in a teacup," said
Mike Lenhoff, chief strategist and head of research at Brewin
Dolphin Securities, in London.
"But it's a reminder that you have these timebombs ticking
away. They'll go off from time to time, though this one has not
had a major impact."
He added: "I have been impressed by the resilience of the
markets and I think they may go sideways for a while, or they
could see some profit-taking if central banks decide to raise
interest rates."
Efforts by Dubai World to restructure about $26 billion in
debt out of the estimated $59 billion it owes reassured
investors that the emirate's debt problems can be contained.
Dubai World, the government-controlled conglomerate that led
the transformation of Dubai into a regional hub for finance,
investment and tourism, unveiled details of a restructuring plan
late on Monday that would cover debt owed by its main property
firms, Nakheel and Limitless. [] []
The European benchmark is up more than 56 percent from its
lifetime low of March 9, as investors have seen several
economies emerge from recession. Data on Tuesday showed that
Switzerland became the latest to do so, growing at 0.3 percent
in the third quarter. []
German unemployment fell for a fifth straight month
[]
Across Europe, Britain's FTSE 100 <> ended the day 2.3
percent higher; Germany's DAX <> and France's CAC-40
<> rose 2.7 and 2.6 percent respectively.
OILS GAIN
Oil shares gained as Brent crude futures <LCOc1> rose
towards $80 a barrel, helped by a weaker dollar, trading at
about $1.51 to the euro.
BP <BP.L>, Royal Dutch Shell <RDSa.AS>, BG Group <BG.L>, ,
Repsol <REP.MC>, Total <TOTF.PA> and StatoilHydro <STL.OL> added
2.1 to 2.5 percent.
Miners gained as spot gold <XAU=> hit a record high of more
than $1,200 an ounce and copper <MCU3> rose to a 14-month high .
BHP Billiton <BLT.L>, Anglo American <AAL.L>, Antofagasta
<ANTO.L>, Rio Tinto <RIO.L>, Fresnillo <FRES.L>, Lonmin <LMI.L>
and Xstrata <XTA.L> rose between 3.3 and 7.5 percent.
Eurasian Natural Resources <ENRC.L> rose 4.4 percent,
extending Monday's rise after Bank of America Merrill Lynch
added the stock to both its developed and emerging Europe 1
lists.
U.S. macroeconomic data was mostly positive. Pending sales
of previously owned U.S. homes rose unexpectedly to their
highest level in 3-1/2 years in October, suggesting the housing
market recovery was gaining steam. ID:nN01260552]
The U.S. manufacturing sector grew in November for the
fourth straight month but at a slower rate than expected.
[]
Wall Street was higher around the time European bourses were
closing. The Dow Jones <>, S&P 500 <.SPX> and Nasdaq
Composite <> were up between 1.2 and 1.4 percent.
Vivendi <VIV.PA> rose 4 percent. General Electric Co <GE.N>
and Vivendi have agreed in principle to a deal in which GE would
buy the French company's 20 percent stake in NBC Universal for
$5.8 billion. []
(Editing by Greg Mahlich)
((brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters
Messaging: brian.gorman.thomsonreuters.com@reuters.net))
