* European shares close 0.2 pct higher
* U.S. data boosts recovery hopes
* Worries persist on euro zone sovereign debt
* GDF Suez rises on report it will stick to earnings goals
By Harpreet Bhal
LONDON, May 3 (Reuters) - European shares rose on Monday, as
upbeat U.S. data boosted hopes of an economic recovery, although
doubts persisted on Greece's ability to implement the tough
austerity measures it has agreed to under a $147 billion bailout
deal.
The FTSEurofirst 300 <> index of leading European
shares closed 0.2 percent higher at 1,064.56 points -- after
losing 2.7 percent last week -- its third straight week of
declines.
Investor confidence was lifted by data showing growth in
U.S. manufacturing, construction and consumer spending,
reinforcing the view that an economic recovery is under way in
the world's largest economy. []
Among the risers, GDF Suez <GSZ.PA> added 1.9 percent after
it stuck to its earnings goals despite a drop in first-quarter
core profit, according to documents released ahead of the
utility's shareholder meeting on Monday [].
European finance ministers agreed the record 110
billion-euro ($147 billion) bailout for Greece on Sunday, with
Athens set to carry out spending cuts and tax hikes worth 30
billion euros over three years, on top of belt-tightening
measures already taken. ]ID:nLDE6400CL]
The emergency aid, the most ever for a country, alleviated
some fears of a near-term sovereign debt default, but the
package still has to obtain parliamentary approvals and left
open the question of which fiscally vulnerable country in Europe
might be next. []
"I have doubts if Greece is ever going to succeed in paying
back the money. But having said that, it (the bailout package)
is very good for short-term relief and people appear to be quite
happy with that outcome," said Heino Ruland, strategist at
Ruland Research in Frankfurt.
Banking stocks were mixed, with BNP Paribas <BNPP.PA>,
Deutsche Bank <DBKGn.DE> and UBS <UBSN.VX> up 0.3 to 1 percent,
while Banco Santander <SAN.MC>, BBVA <BBVA.MC> and Banco
Espirito Santo <BES.LS> lost 0.7 to 2.8 percent.
Greek banks <.FTATBNK> shed 1.3 percent in choppy trade
despite the European Central Bank announcing its acceptance of
all Greek government bonds as security for loans, even if their
credit rating continues to fall.
Across Europe, Germany's DAX <> rose 0.5 percent,
France's CAC 40 <> was 0.3 percent higher. UK markets were
closed for a holiday.
TAX PRESSURE
Mining shares were under pressure after the Australian
government slapped a 40 percent tax on mining profits to fund a
boost to workers' income in an election year. []
Boliden <BOL.ST>, Eramet <ERMT.PA> and Aurubis <NAFG.DE>
shed 0.1 to 3.3 percent.
Among other fallers, BP <BP.L> shares in Frankfurt <BP.F>
sagged 7.4 percent after the huge oil slick caused by an
underwater leak continued to creep toward the U.S. Gulf Coast,
with the Obama government pressing the energy major to stem the
oil gushing from its ruptured offshore well.
BP's Chief Executive Tony Hayward was quoted as saying on
Monday that BP was ready to pay all legitimate claims tied to
the oil spill. []
On the macroeconomic front, the euro zone's manufacturing
sector continued to power ahead in April, faster than previously
thought, as output reached the highest level in almost 10 years,
driven by a record performance in Germany, the Markit Eurozone
Manufacturing Purchasing Managers' Index showed.
(Editing by Greg Mahlich)
