* FTSEurofirst 300 index closes up 1.8 pct
* Financials, oils gain
* Volkswagen recovers from earlier falls
By Joanne Frearson
LONDON, June 29 (Reuters) - European shares closed higher on
Monday, with financials given a boost by broker upgrades and
rising crude <CLc1> prices lifting energy stocks.
The pan-European FTSEurofirst 300 <> index of top
shares closed up 1.8 percent at 859.63 points after falling
nearly 2 percent last week.
The European benchmark index is up more than 33 percent from
its lifetime low of March 9, as investors have become more
confident on the prospects of recovery. It is set to finish the
second quarter up more than 17 percent.
"So little on the agenda today ... but it is not a
discouraging day, we had a down week last week, now we are just
bouncing around and I think where we go depends on the next lot
of economic data that comes out," said David Buik, partner at
BGC Partners.
Banks added the most points to the index. BNP Paribas
<BNPP.PA>, Banco Santander <SAN.MC> and Barclays <BARC.L> were
2.9-4.3 percent higher.
Lloyds <LLOY.L> gained 6.1 percent after Goldman Sachs
upgraded its rating to "buy" from "neutral".
Other financials were given a boost by broker upgrades.
Admiral Group <ADML.L> ticked up 3.2 percent after Credit Suisse
raised its rating for the insurer to "outperform" from "neutral"
.
Munich Re <MUVGn.DE> rose 3.8 percent after UBS upgraded it
stance on the reinsurer to "buy" from "neutral" .
Across Europe, the FTSE 100 <> index was up 1.3
percent, Germany's DAX <> was 2.3 percent higher and
France's CAC 40 <> was up 2 percent.
VOLKSWAGEN RECOVERS FROM EARLIER FALLS
Energy stocks were higher as crude <CLc1> rose 2.8 percent
just above $71 a barrel. BG Group <BG.L>, BP <BP.L>, Royal Dutch
Shell <RDSa.L> and Total <TOTF.PA> were up 2-4.1 percent.
Novo Nordisk <NOVOb.CO> jumped 6.9 percent, after falling
around 5 percent last week, on expectations that sales of its
modern insulins will benefit from concerns over the safety of
Sanofi-Aventis <SASY.PA> rival drug Lantus. []
Irish drugmaker Elan <ELN.I> retreated 1.7 percent following
earlier gains. The Sunday Times newspaper, said Swiss peer
Novartis <NOVN.VX> was in talks to buy parts of the group,
including its flagship multiple sclerosis products and its
Alzheimer's disease pipeline. []
A spokeswoman for Elan said it did not comment on
speculation. A spokesman for Novartis declined to comment.
Novartis was down 0.5 percent.
Sanofi was up 1.5 percent, after plunging last week on
concerns about imminent new research findings on Lantus and
cancer.
Volkswagen <VOWG.DE> recovered from earlier falls to gain
0.7 percent. Lower Saxony, Volkswagen's second-largest
shareholder, said it is pushing VW and luxury automaker Porsche
to break a deadlock in merger talks as the two German carmakers
squabble over a deal and denied making any ultimatum which was
"detrimental to the cause". []
Earlier, Volkswagen had fallen after news reports over the
weekend indicated that the power struggle with Porsche
<PSHG_p.DE> might have escalated with no clear solution in
sight.
"There is a lot of uncertainty, and even contradictory
reports, surrounding the whole affair, and investors could be
exiting because they don't want to be caught off guard," a
Frankfurt-based trader said.
(Reporting by Joanne Frearson; Editing by Hans Peters)
