* FTSEurofirst 300 index up 0.4 percent
* ArcelorMittal up 3 pct after Japan steel stocks surge
* Technology sector rallies, led by Nokia, Ericsson
* Markets await results from Citigroup, GE
By Peter Starck
FRANKFURT, April 17 (Reuters) - European stocks rose early
on Friday, lifted by steelmaker ArcelorMittal <ISPA.AS> after a
surge in Japanese steel shares, banks, and techs that included
Nokia <NOK1V.HE> and Ericsson <ERICb.ST>.
By 0840 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.4 percent at 805.09 points, having hit
a fresh two-month high at 807.83 points earlier.
Banks added most points to the index, with UBS <UBSN.VX> up
3.5 percent and Deutsche Bank <DBKGn.DE> 1.8 percent higher.
"European markets are taking their cue mainly from Wall
Street," said Michael Koehler, equity strategist at LBBW.
U.S. stocks rallied overnight as reassuring results from
bellwethers, including Google <GOOG.O>, lifted technology shares
and JPMorgan's <JPM.N> better-than-expected profit added to
banking sector stabilisation hopes. []
On Friday's corporate earnings front, eyes will be on
first-quarter reports from Citigroup <C.N> and General Electric
<GE.N>, both due for release before the U.S. stock markets open.
"Positive surprises from Citigroup and GE could further fuel
the cautious recovery of risk appetite," Commerzbank said in a
note.
Koehler at LBBW said the first-quarter earnings season in
the United States had so far surprised positively, especially
the banks.
"There are hopes that Citigroup will confirm the trend later
today," he said. "But bank shares already price in quite a lot
of positive news so the market impact might not be all that big
even if Citigroup delivers better than expected results."
He added: "GE is important because its broad range of
activities makes it a very good business cycle indicator. GE's
outlook will be very closely watched."
ArcelorMittal, up 3 percent, was the top non-financial
blue-chip gainer in Europe after Japan's Nippon Steel <5401.T>
negotiated a smaller-than-expected price cut with Toyota Motor
Corp <7203.T>.
"A price reduction of only 10 percent comes as a positive
surprise. Japanese steel shares have profited," said DZ Bank
analyst Dirk Schlamp.
TECH SHINE
The DJ STOXX technology index <.SX8P> was the top sectoral
gainer in Europe with a rise of 2 percent.
Nokia <NOK1V.HE> added 2.2 percent after rising more than 9
percent on Thursday as investors cheered the mobile phone
maker's outlook.
Shares in telecoms equipment maker Ericsson <ERICb.ST>,
whose SonyEricsson mobile phone joint venture reported a
first-quarter loss in line with expectations and said it would
slash another 2,000 jobs this year, rose 2.9 percent.
In addition to the results from Citigroup and GE, investors
will also focus on the Reuters/University of Michigan's U.S.
consumer confidence survey for April due at 1355 GMT.
"Consumer sentiment in the U.S. could show a mild
improvement, as confidence on the equity markets has also
risen," said Helaba analyst Ralf Umlauf.
ING said financial markets had been buoyed by data
suggesting that the U.S. economy may contract at a slower rate
over coming quarters.
"Improvements in a range of economic releases, including
household consumption, new orders figures and housing activity
reports, suggest that 4Q08 will turn out to have recorded the
worst GDP growth figure and that numbers are likely to be
better, but still negative, through 2009," ING said in a note.
However, Landesbank Berlin (LBB) warned of volatile and
downward trending stock markets in the coming months.
"The (Q1 corporate earnings) reporting season which has just
begun should be marked by profit disappointments and a lack of
outlooks," LBB said in a strategy note.
"We regard the explosion in bank shares as exaggerated," LBB
added.
Measured by the DJ STOXX sector index <.SX7P>, European bank
shares have risen more than 80 percent since March 9, outpacing
the broader European market's 25 percent rise.
(Editing by Karen Foster)
