* FTSEurofirst 300 up 0.6 pct; on track to rise for 5th day
* Banks lifted by UBS results, Basel scaling back proposals
* BP says spill charge $32.2 bln, Hayward to leave on Oct. 1
By Harpreet Bhal
LONDON, July 27 (Reuters) - European shares hit a five-week
intraday high on Tuesday, with banks buoyed by strong results
from UBS <UBSN.VX> and relief over plans by regulators to scale
back tough rules.
By 0828 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.6 percent at 1,055.14 points, having
earlier hit its highest level since June 22.
The Euro STOXX 50 index <>, the euro zone's
blue-chip index, was up 1 percent at 2,770.28 points, holding
above its 50 percent Fibonacci retracement from a high in April
to a low in May of 2,737.62 points -- a key technical level
which it crossed for the first time in five weeks on Monday.
A raft of corporate results dictated the direction for
equities as the European earnings season gets into full swing.
"Expectations are rising for earnings. Companies are guiding
full-year forecasts up in spite of concerns about a loss of
recovery momentum ... and that is helping to keep these markets
reasonably firm," said Mike Lenhoff, chief strategist at Brewin
Dolphin.
UBS surged 8.2 percent as the bank said strong equities and
currency revenues drove second-quarter net profit well above
forecasts. []
French banks Societe Generale <SOGN.PA>, Credit Agricole
<CAGR.PA> and BNP Paribas <BNPP.PA> featured among the top
gainers, up 6.4 to 8.8 percent, boosted by strong results from
peer UBS and as the Basel Committee said they will scale back
many of the proposals to beef up bank capital and liquidity
rules. []
"As key Basel 3 'losers', the French banks should benefit
from these revisions, in addition to the sovereign disclosure at
the stress tests," UBS analyst Omar Fall said.
The results of European bank stress tests late on Friday
helped restore confidence in the sector as it contained no major
negative surprises, and showed only seven of 91 banks failed the
tests aimed at gauging banks' ability to withstand financial
shocks.
"Though one might question the merits (of the stress tests),
the formality of having gone through the exercise is a worthy
undertaking as it demonstrates the euro zone is attempting to
resolve its sovereign debt crisis and that is helping to improve
the underlying tone of the market," Lenhoff said.
Also rising after results, Deutsche Bank <DBKG.DE> added 3.1
percent after Germany's top lender posted second-quarter pretax
profit in line with expectations, helped by lower loan loss
provisions amid weaker industry trends in investment banking.
Oil major BP <BP.L> said it would take a charge as a result
of the Gulf of Mexico oil spill amounting to $32.2 billion,
driving it to a second quarter loss of $16.97 billion
It also announced that Chief Executive Tony Hayward will
step down on Oct. 1 and will be replaced by fellow executive
Robert Dudley. The stock added 0.5 percent. []
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC 40 <> rose 0.6 to 1 percent.
KLEPIERRE SLIPS
French property group Klepierre <LOIM.PA> shed 6 percent
after its chief executive painted a glum picture of consumer
spending for the rest of 2010. The firm reported a fall in
first-half rental income on a like-for-like basis and a fall in
net cash flow per share. []
Among other movers, Intercontinental hotels <IHG.L> fell 6.3
percent after traders said Barclays Capital placed 29.9 million
shares between 1,120 and 1,130 pence each.
(Additional reporting by Lionel Laurent in Paris; Editing by
Jon Loades-Carter)
