* FTSEurofirst 300 index up 0.8 percent
* Banks rise as Bank of America says to repay debt
* For up-to-the-minute stocks news, click on []
By Brian Gorman
LONDON, Dec 3 (Reuters) - European shares rose in early
trade on Thursday, building on gains in the previous two
sessions, with banks up after Bank of America <BAC.N> said it
would repay government debt.
At 0913 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.8 percent at 1,024.02 points.
The European benchmark is up more than 58 percent from its
lifetime low on March 9, as investors have become more confident
on the prospects for economic recovery.
Banks rose after Bank of America Corp <BAC.N> said it would
repay $45 billion of U.S. taxpayer bailout funds. []
"Bank of America paying back its debt is positive," said
Bernard McAlinden, investment strategist, at NCB Stockbrokers.
Banco Santander <SAN.MC>, Barclays <BARC.L>, Lloyds
<LLOY.L>, Societe Generale <SOGN.PA>, UBS <UBSN.VX> and
UniCredit <CRDI.MI> rose 1.4-4.8 percent.
Siemens <SIEGn.DE>, the world's top maker of industrial
robots, fell 1.2 percent after saying it expected operating
profit to decline in its current year after a hefty writedown on
its struggling networks unit pushed it to a fourth-quarter net
loss.
Japan's Nikkei average climbed 3.8 percent on Thursday to a
five-week closing high.
Mitsubishi Motors Corp <7211.T> soared 13.5 percent after
PSA Peugeot-Citroen <PEUP.PA> and Mitsubishi Motors <7211.T>
said they were in talks to expand their partnership, and the
Nikkei business daily reported Peugeot could acquire a 30-50
percent stake in Mitsubishi. []
Peugeot <PEUP.PA> rose 2 percent. Daimler <DAIGn.DE>, and
Renault <RENA.PA> rose 1.5 and 2.4 percent respectively.
Energy companies gained as crude prices <CLc1> rose more
than 1 percent to top $77 a barrel, helped by a weak dollar,
which traded above $1.51 against the euro <EUR=>.
Total <TOTF.PA>, ENI <ENI.MI>, Royal Dutch Shell <RDSa.AS>,
Repsol <REP.MC> and StatoilHydro <STL.OL> rose 0.8-1.1 percent.
Higher prices for metals, including gold reaching yet
another record, saw miners rise.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Rio Tinto <RIO.L>, Vedanta <VED.L> and Xstrata <XTA.L>
rose between 1.1 percent and 2 percent.
Across Europe, Britain's FTSE 100 <> was up 0.7
percent; France's CAC40 <> and Germany's DAX <> were
up 1 percent and 0.9 percent respectively.
KINGFISHER RISES
Home improvement retailer Kingfisher <KGF.L> rose 2.6
percent after it beat forecasts with a 28 percent rise in
third-quarter profit. []
Belgian grocer Delhaize <DELB.BR> rose 2.8 percent after
announcing plans to cut 300 million euros ($452 million) in
costs by 2012 and expand in its new markets, joining rivals
investing in fast-growing emerging markets and discount stores.
[]
In economic news, the euro zone's service sector expanded
for a third consecutive month in November, albeit at a slower
pace than reported early last week, as a regional divide
widened, surveys showed. []
Later in the session, attention will turn to the statement
from the European Central Bank. The ECB will keep its key
interest rate on hold at a record low of 1 percent, according to
all 80 economists in a Reuters poll. The ECB will also update
the market with its forecast for growth and inflation.
"They may decide to make their liquidity provision less
generous, but that's not a signal that they're going to raise
interest rates soon," said McAlinden.
(Editing by Dan Lalor)
((brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters
Messaging: brian.gorman.thomsonreuters.com@reuters.net))
