Banks lift Europe shares as Dubai concerns ease

                                
 * FTEurofirst 300 index up 0.8 pct
                                
 * Banks gain as Dubai concerns ease
                                
 * Commodities in demand
                                
 By Joanne Frearson
                                
 LONDON, Dec 14 (Reuters) - European shares rose for a third
straight session on Monday, led higher by financial stocks, as
Dubai debt fears eased.
                                
 By 0911 GMT, the FTSEurofirst 300 <.FTEU3> index of leading
European shares was up 0.8 percent at 1,017.88 points. The index
is up 58 percent since reaching a record low in early March and
is 22 percent higher for the year.
                                
 Investor fears eased after Abu Dhabi bailed out Dubai on
Monday with $10 billion in surprise aid for debt-laden Dubai
World, but Dubai said creditors still needed to approve a
standstill on outstanding debt. [ID:nLDE5BD0FV]
                                
 "The Abu Dhabi support for Dubai World is good news and
relieves some of the worries. Banks will probably do better on
the Dubai news," said Bernard McAlinden, market strategist at
NCB Stockbrokers.
                                
 Banks added the most points to the index. HSBC <HSBA.L>,
Standard Chartered <STAN.L>, Banco Santander <SAN.MC>, Barclays
<BARC.L> and Lloyds Banking Group <LLOY.L> were up 1.1 to 4.8
percent.
                                
 Meanwhile, Lloyds said take-up for its record 13.5 billion
pound ($21.9 billion) rights issue totalled over 95 percent,
drawing a line under a turbulent few months for Britain's
largest retail lender. [ID:nLDE5BD089]
                                
 In the insurance sector, AXA <AXAF.PA> rose 2 percent.
Australia's AMP Ltd <AMP.AX> and the French insurer has raised
their takeover offer for AXA Asia Pacific Holdings <AXA.AX> by
16 percent to $11.7 billion, giving the target a week to agree
to the new bid. [ID:nSGE5BC018]
An article in Barron's said the stock could jump 50 percent
as it makes opportunistic mergers and grabs market share from
its more pain-inflicted rivals. [ID:nN13134185]
                                
 
                                
 COMMODITIES RISE
                                
 Commodity stocks were in demand as crude <CLc1> pared losses
on the Dubai bailout news. Oil companies BG Group <BG.L>, BP
<BP.L>, Royal Dutch Shell <RDSa.L> and Total <TOTF.PA> were 0.4
to 0.9 percent higher.
                                
 Miners were in favour as metal prices gained. Copper
<MCU3=LX> was up 0.5 percent and gold <XAU=> moved away from a
four-week low.
                                
 Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Eurasian Natural Resources Corporation <ENRC.L>, Rio
Tinto <RIO.L> and Xstrata <XTA.L> rose 1.1 to 1.9 percent.
                                
 Among individual movers, German car maker Daimler AG
<DAIGn.DE> gained 1.2 percent after its chairman and CEO of
Daimler Northeast Asia said it expects double-digit growth in
its North Asia sales next year. [ID:nTOE5BD02S]
                                
 Whitbread <WTB.L>, Britain's biggest hotel and coffee shop
operator, was up 3.8 percent after it said it expected its
2009/10 results to "somewhat exceed" market estimates on the
back of positive sales momentum and cost cutting initiatives.
[ID:nLDE5BD085]
                                
 On the downside, drugmakers were lower. AstraZeneca <AZN.L>
fell 0.6 percent after it failed to win a summary judgment
against generic companies challenging the patent on its
blockbuster cholesterol drug Crestor. [ID:nLDE5BD08V]
                                
 Across Europe, the FTSE 100 <.FTSE> index was up 1 percent,
Germany's DAX <.GDAXI> rose 1.1 percent and France's CAC 40
<.FCHI> was 0.8 percent higher.
 (Reporting by Joanne Frearson; Editing by Hans Peters)