* FTSEurofirst 300 up 1.6 pct, after Monday's 3.9 pct drop
* M&S surges 11 pct after better-than-feared results
* Banks rise, brushing aside Fortis's huge loss
* For up-to-the-minute market news, click on []
By Blaise Robinson
PARIS, March 31 (Reuters) - European stocks gained ground in
early trade on Tuesday in a broad rally clawing back a portion
of the past two sessions' sharp losses as investor focus turned
to a meeting of G20 world leaders.
British retailer Marks & Spencer <MKS.L> surged 11 percent
after posting a smaller-than-expected fall in underlying
fourth-quarter sales, saying it was turning around its troubled
food business and holding market share in clothing.
At 0832 GMT, the FTSEurofirst 300 <> index of top
European shares was up 1.6 percent at 720.58 points. The index,
which sank 3.9 percent on Monday, is down 14 percent in 2009,
hit by the deepening global economic downturn as well as fears
over the health of the banking system.
"The macro landscape has been stabilising, which has helped
equities bounce back from historical lows. But to really improve
market sentiment, we need to see the data improving and not just
stabilising," said Jacques Henry, analyst at Louis Capital
Markets, in Paris.
Embattled financial group Fortis <FOR.BR> rose 6 percent
after posting a 28 billion euro loss in 2008 due to massive
negatives from banking activities stripped out by the Belgian
and Dutch states.
The news didn't prevent banking stocks rising, with Barclays
<BARC.L> up 2.6 percent, UBS <UBSN.VX> up 4.5 percent, and BNP
Paribas <BNPP.PA>, which is poised to take over a big chunk of
Fortis, up 1.8 percent.
On the downside, German carmaker Porsche <PSHG_p.DE> fell
5.5 percent as the company's net debt figure, which it released
together with better-than-expected first-half results, was seen
as negative.
"Net debt of 9 billion euros from our point of view is a
clear disappointment, especially after statements by the CFO at
the Geneva Motorshow some weeks ago," DZ Bank analyst Michael
Punzet said in a note.
Around Europe, Britain's FTSE 100 index <> was up 2.5
percent, Germany's DAX index <> was up 1.3 percent and
France's CAC 40 <> was up 1.5 percent.
Mining and energy shares were on the rise, rallying along
with commodity prices. BHP Billiton <BLT.L> rose 3.2 percent and
Total <TOTF.PA> climbed 1.1 percent.
The FTSEurofirst 300 <> index of top European shares
is on track to end the month of March mostly unchanged. The
index, beaten down in the first part of the month, has gained
nearly 12 percent since reaching an all-time low on March 9.
U.S. President Barack Obama was heading to Europe on Tuesday
with a hefty agenda for tackling the economic crisis, and will
stop first in London where he will attend the summit of the
Group of 20 major economies on Thursday.
Investors hope the leaders will agree on further coordinated
measures to revive the world economy.
Japanese Prime Minister Taro Aso was expected to outline a
new stimulus plan for the world's second-largest economy later
on Tuesday as rising unemployment and falling spending showed
Japan was still stuck in its worst recession in 60 years.
On the data front, investors will keep an eye on U.S.
consumer confidence monthly figures, due at 1400 GMT. The data,
which will shed light on the outlook for the recession-hit
economy, is expected to have edged up in March from the record
low hit in February.
(Additional reporting by Christoph Steitz in Frankfurt; Editing
by Dan Lalor)
