European shares rise early, led by cyclicals

                                
 * FTSEurofirst 300 index rises 1.6 percent
                                
 * Cyclicals gain: banks, commodities higher
                                
 * Index up 21.5 percent from March 9 low
                                
 
                                
 By Brian Gorman
                                
 LONDON, April 6 (Reuters) - European shares rose on Monday
morning, tracking strong gains in Asia and a late rally in the
United States on Friday, as optimism for economic recovery grew,
sending commodities stocks higher.
                                
 At 0830 GMT, the FTSEurofirst 300 <.FTEU3> index of top
European shares was up 1.6 percent at 783.97 points at the start
of a week shortened by the Good Friday holiday.
                                
The index has risen 21 percent since hitting a record low of
March 9, and is now down just 5.8 percent for 2009.
                                
"Bulls are putting their heads above the parapet on the basis
that the global economy appears to be getting past the bottom,
but the  next test will be how robust earnings are," said
Richard Hunter, head of equities at Hargreaves Lansdown.
                                
 Banks were among early gainers. Banco Santander <SAN.MC>,
Barclays <BARC.L>, Credit Suisse <CSGN.VX>, Societe Generale
<SOGN.PA> and UniCredit <CRDI.MI> rose between 1.4 and 3.6
percent.
                                
 HSBC <HSBA.L> rose 4.6 percent after its massive rights
issue received a robust response from investors. [ID:nHKG78931]
                                
 Insurers Legal & General <LGEN.L>, Prudential <PRU.L>, Swiss
Re <RUKN.VX> and Zurich Financial <ZURN.VX> rose between 3.2 and
6.1 percent.
 Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX
<.GDAXI> and France's CAC-40 <.FCHI> were up between 1.4 and 1.8
percent.
                                
 
                                
 OILS RISE 
                                
 Oil stocks rose, with crude <CLc1> rising more than 90 cents
to more than $53 a barrel.
                                
 ENI <ENI.MI>, BP <BP.L> and  Statoil <STL.OL> rose between
0.9 and 2 percent.
                                
 Most miners rose, as copper prices <MCU3=LX> hit five-month
highs. Anglo American <AAL.L>, Antofagasta <ANTO.L> and Xstrata
<XTA.L> were up between 2.1 and 6.8 percent.
                                
 But Rio Tinto <RIO.L> was down 2.3 percent on reports it is
planning an $8 billion rights issue. [ID:nSP413684]
                                
 Pharmaceuticals were among the few losers, with
GlaxoSmithKline <GSK.L>, Novartis <NOVN.VX> and Sanofi-Aventis
<SASY.PA> down between 1 and 1.2 percent.
                                
 Citigroup said in a note that cyclicals were rallying but
cautioned against overoptimism.
                                
 "Hopes that recent global economic stabilisation packages
will work has revived sentiment. We would caution about hoping
this rally will prove sustainable for the more
commodity-oriented shares ... The rally in the more defensive
stocks might just prove to be sustainable."
                                
 Swedish construction group Skanska <SKAb.ST> rose 3.9
percent, despite reporting reduced activity for the first
quarter.
 Improved sentiment on the outlook for the global and UK
economy lifted property companies, with Land Securities <LAND.L>
and British Land <BLND.L> up 8.6 and 6.9 percent respectively.
                                
 U.S. stocks rose on Friday, with the Dow marking its best
four-week winning streak since 1933, lifted by robust results
from Research in Motion and comments by Fed Chairman Ben
Bernanke, who said the central bank would do everything it could
to stabilise banks. [ID:nL5244473]
                                
 Asian shares climbed to a six-month high on Monday.
[ID:nT24077]
 (Additional reporting by Simon Falush, editing by Will
Waterman)