* FTSEurofirst 300 index closes 0.5 pct higher
* Most banks rise
* Energy stocks fall as crude retreats
By Brian Gorman
LONDON, May 14 (Reuters) - European shares rose on Thursday,
snapping a three-day losing run, as gains for several banking
heavyweights more than offset energy stocks dropping on weaker
crude prices.
The pan-European FTSEurofirst 300 <> index of top
shares rose 0.5 percent to close at 835.71 points. The index is
up 29.5 percent from the lifetime low it hit on March 9.
"The market doesn't want to give up a lot of ground," said
Mike Lenhoff, chief strategist and head of research at Brewin
Dolphin Securities, in London.
"It may have got a bit ahead of itself, and may need a bit
of cooling off. But it's here because it's taking the view that
there's a recovery out there."
Several banks regained some of the ground lost in recent
days.
Barclays <BARC.L>, Credit Suisse <CSGN.VX>, HSBC <HSBA.L>,
and Royal Bank of Scotland <RBS.L> rose between 1.7 and 4.2
percent.
UBS <UBSN.VX> rose 4 percent on reports the Swiss government
is seeking a quick exit from its investment in the country's
biggest bank.
The government said there would be no statement on the
stake on Thursday and that it is still considering what to do
when the UBS lock-in period ends on June 9.
But Natixis <CNAT.PA> tumbled 13.6 percent after reporting a
first-quarter loss late on Wednesday.
Belgian bank KBC <KBC.BR> slumped 24.9 percent, as trading
resumed following suspension on Wednesday. KBC, which has
secured government guarantees to help it survive the financial
crisis, posted a 3.6 billion euro ($4.9 billion) first-quarter
loss, hit by 4.1 billion of writedowns on its investment
portfolio []
Energy stocks were the biggest losers as crude <CLc1> lost
more than 1 percent. BP <BP.L>, ENI <ENI.MI>, Royal Dutch Shell
<RDSa.L>, StatoilHydro <STL.OL> and Total <TOTF.PA> lost between
1.2 and 3.1 percent.
WALL STREET RISES
U.S. shares were higher around the time European bourses
were closing. The Dow Jones <>, S&P 500 <.SPX> and Nasdaq
Composite <> were up between 0.4 and 1.3 percent.
The market shrugged off the latest evidence of recession in
the world's biggest economy.
The number of U.S. workers filing new claims for jobless
benefits rose more than expected last week, government data
showed. Initial claims for state unemployment insurance benefits
increased 32,000 to a seasonally adjusted 637,000 in the week
ended May 9. Analysts polled by Reuters had forecast new claims
rising to 610,000. []
Meanwhile, a major focus for the financial sector was news
that the Obama administration had proposed tougher controls for
over-the-counter derivatives. []
"This might affect some of the financials. Obviously it will
hit the big banks which have trading operations and hedge funds
as well, but I am not sure if it is a huge thing that is on
people's minds today," said Peter Dixon, strategist at
Commerzbank.
British telecoms carrier BT <BT.L> fell 6.4 percent after
announcing 15,000 further job losses and saying it would cut its
dividend after its pension costs almost doubled and a 1.58
billion pound ($2.4 billion) writedown tipped it into an annual
loss. []
"Companies are transferring their recession to the economy,"
said Lenhoff. "They're cutting jobs, to boost productivity and
earnings."
HeidelbergCement <HEIG.DE> slumped 14.4 percent following an
announcement the stock will be removed from the MSCI Germany
Index <.MSCIDE> on May 29, 2009.
Belgian pharmaceutical group UCB <UCB.BR> soared 15.6
percent after U.S. regulators approved its rheumatoid arthritis
drug Cimzia. []
Across Europe, the FTSE 100 <> index closed 0.7 percent
higher; Germany's DAX <> and France's CAC 40 <> rose
0.2 and 0.1 percent respectively.
(additional reporting by Joanne Frearson; editing by David
Cowell)
