* FTSEurofirst 300 up 1.2 percent
* AXA leads insurers higher; banks rebound
* Defensive drugmakers higher
* Energy shares track weaker crude
By Joanne Frearson
LONDON, Sept 25 (Reuters) - European shares rose early on
Thursday, led by banks and insurers and tracking gains in U.S.
index futures on hopes for an emergency meeting to hammer out
details of a rescue plan for the financial sector.
By 0910 GMT, the FTSEurofirst 300 <> index of top
European shares was up 1.4 percent at 1,116.81 points in choppy
trade, rebounding from a low of 1,100.56. The index has fallen
nearly 27 percent this year.
Insurers were among the top gainers in Europe after AXA
<AXAF.PA> Chief Executive Henri de Castries told Europe 1 radio
that the current crisis offers the group opportunities to
strengthen its market position. Axa was 3.3 percent higher.
Swiss Re <RUKN.VX> was 3.1 percent higher after the group
said its investment portfolio remains sound despite tough
financial markets and reaffirmed its targets as additional
writedowns were lower many had expected.
Banks were stronger, with Royal Bank of Scotland <RBS.L>
gaining 3.5 percent and UBS <UBSN.VX> adding 4.3 percent.
Uncertainty continued in the banking sector as investors
grew anxious about when the $700 billion rescue plan for the
U.S. financial sector will be approved by Congress.
"There is still uncertainty about U.S. Treasury's bail out
phase. There needs to be quick action, it is important that
investors know what is going to be done about it as the
alternatives are too dire," said Bernard McAlinden, market
strategist at NCB Stockbrokers.
An emergency meeting has been called for Thursday by U.S.
President George Bush to hammer out details.
"That (the meeting) is the key to make things happen. There
is great value in the market. In the U.K. the dividend yield has
exceeded the yield on gilts and value is emerging as well in
Europe," said Mike Lenhoff, strategist at Brewin Dolphin.
"What is lacking is the confidence. The bail out could help
provide it - that the fundamentals are being addressed," added
Lenhoff.
Across Europe, the FTSE 100 <> index was ahead 0.6
percent, Germany's DAX <> was up 1.3 percent and France's
CAC 40 <> was 1.3 percent higher.
ENERGY SHARES FALL; DEFENSIVE DRUGMAKERS GAIN
Energy stocks slipped as crude <CLc1> fell back 1.1 percent
to $104.57. Analysts said that evidence of slowing demand in the
United States, the world's largest energy consumer, and
lingering uncertainty over the bank bailout plan, will probably
keep gains in check.
BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell <RDSb.L> and
Total <TOTF.PA> were down between 0.6-1 percent.
Miners were mixed. Anglo American <AAL.L> rose 2.8 percent,
while Eurasian Natural Resources <ENRC.L> fell 3.3 percent and
Lonmin <LMI.L> lost 1.4 percent.
The pharmaceutical sector also performed well as investors
decided to take a defensive stance.
Sanofi-Aventis <SASY.PA>, Novartis <NOVN.VX> and
GlaxoSmithKline <GSK.L> were trading between 0.4-1.7 percent
higher.
(Editing by David Cowell)
