* FTSEurofirst 300 index up 1.6 percent
* Banks gain ahead of U.S. plan
* Daimler jumps on Abu Dhabi stake
By Joanne Frearson
LONDON, March 23 (Reuters) - European shares rose for a
third straight session on Monday, with financials the major
gainers as investors trained their sights on a U.S. Treasury
plan to buy toxic assets from banks.
By 0929 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was up 1.6 percent at 729.02 points.
However, the FTSEurofirst 300 index is still down around 12
percent for the year.
"Investors are waiting for details of the Treasury
department plan for the problem assets in the U.S. banks. There
is also talk of a bigger stimulus package in Japan and in China
there is talk the authorities want to promote consolidation in
the auto and steel sectors that could be seen as bullish for
profitability," said Bernard McAlinden, market strategist at NCB
Stockbrokers.
Bank stocks were higher. Barclays <BARC.L> gained over 9
percent after private equity group Hellman & Friedman, Bain
Capital and TPG <TPG.UL> showed interest in buying its iShares
business. []
Credit Suisse <CSGN.VX>, Societe Generale <SOGN.PA>, Banco
Santander <SAN.MC>, BNP Paribas <BNPP.PA> and UniCredit
<CRDI.NI> were up 1.9 percent to 5.5 percent.
According to a Washington official, the government will put
in $75 billion to $100 billion from its bailout fund to team up
with private investors and buy toxic assets from banks in a move
to thaw frozen credit markets and revive the recession-hit
economy. []
Treasury Secretary Timothy Geithner is due to release
details of the plan at 1245 GMT on Monday.
"Investors are slowly beginning to believe that the various
plans from the governments will work. Markets have been sold
down too far and now are adjusting to a better norm ...
particularly in the financial sector. There is a little bit of
confidence out there this morning," said Howard Wheeldon,
strategist at BGC Partners.
DAIMLER GAINS ON ABU DHABI STAKE
Daimler <DAIGn.DE> rose 6.1 percent after Abu Dhabi
government-linked Aabar Investment <AABAR.AD> completed a $1.82
billion capital hike on Monday after taking a 9.1 percent stake
in the group to become the top stakeholder in the German
carmaker. []
Energy stocks also gained as crude <CLc1> jumped 1.5
percent. BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell <RDSb.L>
and Total <TOTF.PA> were up 0.8 percent to 2.3 percent.
Miners were higher as copper rose <MCU3=LX> 3 percent. Rio
Tinto <RIO.L> was up 5 percent as the Daily Mail said the group
is preparing to hand unprecedented boardroom power to its
Chinese backer.
Xstrata <XTA.L> was 0.7 percent higher after the Wall Street
Journal said acquisition opportunities are developing in the
mining sector, with share prices weak and some companies being
forced to sell assets.
A few sectors were in the red, with defensive drugmakers
lower as investors switched into cyclical stocks. Novartis
<NOVN.VX>, Sanofi Aventis <SASY.PA> and AstraZeneca <AZN.L> were
down 0.3 percent to 0.5 percent.
Later investors will eye U.S. existing home sales for
February with economists in a Reuters poll expecting sales to
come in at an annual rate of $4.45 million, down from $4.49
million in January.
Across Europe, the FTSE 100 <> index was up 2 percent,
Germany's DAX <> was 1.8 percent higher and France's CAC
40 <> was up 1.3 percent.
(Reporting by Joanne Frearson; Editing by Sharon Lindores)
(joanne.frearson@thomsonreuters.com; +44 207 542 2773,
Reuters Messaging:joanne.frearson.thomsonreuters.com@reuters.net)
