* FTSEurofirst 300 index gains 1.2 pct
* Banks' shares rise as Goldman results beat forecasts
* Miners up on higher metals prices
By Brian Gorman
LONDON, July 14 (Reuters) - European shares rose for a
second day on Tuesday, with banks boosted by hopes that
better-than-expected results at Goldman Sachs <GS.N> are
heralding a strong reporting season for the sector.
The FTSEurofirst 300 <> index of top European shares
rose 1.2 percent to 840.15 points, the highest close since July
3, and following a 2 percent surge in the previous session.
Banks added most to the index. BNP Paribas <BNPP.PA>,
Deutsche Bank <DBKGn.DE>, HSBC <HSBA.L>, Societe Generale
<SOGN.PA>, UBS <UBSN.VX> and UniCredit <CRDI.MI> rose between
2.1 and 3.6 percent.
"The economy is getting close to a turning point," said
Darren Winder, head of macro and strategy research at Cazenove,
in London. "Profits are starting to form a bottom, and they
should grow in the second half of the year, and further into
2010."
Goldman Sachs <GS.N>, Wall Street's largest surviving
investment bank, reported a 33 percent rise in quarterly
earnings as a strong gain in trading was offset by a one-time
charge to repay government loans. []
The European benchmark index is up 30.2 percent from the
lifetime low it hit on March 9, but some analysts say the rally
has gone too far, relative to any real signs of recovery.
Economic data from the United States was open to different
interpretations.
A jump in auto and gasoline sales boosted U.S. retailers in
June, while a measure of inflation soared by twice as much as
expected, bolstering hopes the economy was finally beginning a
modest recovery. []
Commerce Department data showed sales at U.S. retailers rose
0.6 percent from a month earlier, ahead of economists'
expectations for a 0.4 percent advance.
But some analysts said the data was weak, once autos and
gasoline are excluded.
A separate report from the Labor Department showed producer
prices jumped 1.8 percent last month, far outstripping forecasts
for a 0.9 percent gain.
MINERS GAIN
Miners were bolstered by higher metals prices. Anglo
American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>,
Kazakhmys <KAZ.L>, Lonmin <LMI.L> and Xstrata <XTA.L> rose
between 2.9 and 9.3 percent.
Rio Tinto <RIO.L> rose 5.1 percent, ahead of a statement on
output on Wednesday.
Fresnillo <FRES.L>, which reports second-quarter production
figures on Thursday, closed 13.3 percent higher with some
investors believing the silver price <XAG=> is ready to rebound.
Autos stocks were also buoyed by the slightly more
optimistic stance investors were taking on the economic outlook.
Renault, <REN.PA> Peugeot, <PEUP.PA> and BMW <BMWG.DE> added
between 2.7 and 5.3 percent.
Shares in Fiat <FIA.MI> rose 2.8 percent after a double
upgrade from ICAP, raising its recommendation to "buy" from
"sell", ahead of the company's second-quarter results on July 22.
Energy stocks rose, though crude prices <CLc1> struggled to
stay above $60 a barrel.
Total <TOTF.PA>, Royal Dutch Shell <RDSa.L> and StatoilHydro
<STL.OL> rose between 0.9 and 2.8 percent.
On the downside, Q-Cells <QCEG.DE>, the world's biggest
maker of solar cells, fell 14.4 percent after it withdrew its
full-year sales outlook, expecting a substantial operating loss
in the second quarter as the market environment remained dire.
[]
Mobile phone operator Vodafone <VOD.L> fell 1.9 percent
after UBS downgraded it to "neutral" from "buy".
ZEW data showed German analyst and investor sentiment fell
in July for the first time since October 2008, but investors
soon shrugged off the weaker-than-expected data. []
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC-40 <> rose between 0.9 and 1.3
percent.
Wall Street was slightly higher as European bourses were
closing. The Dow Jones <>, S&P 500 <.SPX> and Nasdaq
Composite <> were up between 0.1 and 0.3 percent.
(Additional reporting by Simon Falush; editing by Rupert
Winchester)
