* FTSEurofirst 300 gains 0.2 pct
* Oils add most points to index
* Banks take most points off index, focus on UBS
* For up-to-the-minute market news, click on []
By Christoph Steitz
FRANKFURT, April 15 (Reuters) - European stocks rose by
mid-morning on Wednesday as gains in energy shares, boosted by
higher crude and a new BG Group <BG.L> oil discovery, offset
fresh fears over the health of the financial sector.
At 0908 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.2 percent at 791.63 points which, if
maintained, would result in its fourth consecutive day of gains.
The index has lost 5.1 percent so far this year, but is up
22.6 percent since reaching a record low on March 9.
Oil stocks added most points to the index, with the DJ Stoxx
Oil & Gas up 1.1 percent, after BG Group <BG.L> said a new well
had proven the presence of another accumulation of light oil in
the BM-S-9 concession, the third discovery in the block.
Shares in BG Group were up 3.1 percent, while BP <BP.L> and
Petroplus <PPHN.VX> were up 3.8 and 1 percent, respectively.
Crude oil <CLc1> rose 2 percent to $50.40 a barrel.
"The market seems to be cautiously optimistic, but I fear
that this is a bit too early. Financials are still down and
there is no clear trend," said Postbank equity strategist
Heinz-Gerd Sonnenschein.
Later in the day, U.S. CPI for March and the New York Empire
State Manufacturing Survey for April, both due at 1230 GMT, will
be in focus.
U.S. industrial production and capacity utilisation data for
March are due for release at 1315 GMT, followed by the Federal
Reserve's Beige Book of regional economic conditions at 1800
GMT.
"Another dramatic fall of capacity utilisation in the U.S.
industry will revive fears of deflation along with economic
concerns," Commerzbank said in a note.
BANKS IN FOCUS
Banks took most points off the index, after UBS's chief
executive warned of a first-quarter loss and said UBS would cut
8,700 more jobs. []. Shares in the company were down
3.5 percent.
"After the first euphoria, investors are now slamming on the
brakes. UBS is queueing up as just another bank with bad news,"
Sonnenschein added.
Deutsche Bank <DBKGn.DE> fell 1.5 percent, Societe Generale
<SOGN.PA> fell 0.8 percent and BNP Paribas <BNPP.PA> fell 1.7
percent.
U.S. stocks fell on Tuesday as an unexpected drop in retail
sales dented hopes that the recession was coming to an end.
Financial shares lost ground on worries that Goldman Sachs's
<GS.N> share offering could prompt other banks to follow suit.
Across Europe, the FTSE 100 index <> was up 0.7
percent, Germany's DAX <> and France's CAC 40 <> were
both 0.2 percent lower.
Shares in Rio Tinto <RIO.L> dropped 2.5 percent after the
world's biggest producer of aluminium said output fell 6
percent, mostly due to curtailments in Europe. []
(Additional reporting by Peter Starck; editing by Simon Jessop)
