* FTSEurofirst 300 closes 0.02 percent higher
* Banks fall; Greek lenders down on Greece fiscal woes
* ArcelorMittal gains as UBS adds to key list
By Brian Gorman
LONDON, Dec 15 (Reuters) - European shares edged higher on
Tuesday, to extend a winning run to four days, as gains for
defensive stocks offset a decline in banks.
The FTSEurofirst 300 <> index of leading European
shares inched up 0.02 percent to close at 1,018.45 points. The
index was up for the fourth day, the longest winning streak in a
month.
The index went in and out of positive territory several
times in the final minutes of trading.
The European benchmark is up more than 57 percent from its
lifetime low of March 9, as investors have seen several major
economies emerge from recession.
Greek bank shares <.FTATBNK> were under pressure, with
analysts citing concerns about the government failing to
announce tougher measures to shore up the country's finances.
National Bank of Greece <NBGr.AT>, EFG Eurobank <EFGr.AT> and
Bank of Piraeus <BOPr.AT> lost between 4.8 and 4.9 percent.
Other banks to fall included Barclays <BARC.L>, Credit
Suisse <CSGN.VX>, HSBC <HSBA.L>, and Societe Generale <SOGN.PA>,
down between 1.3 and 2.5 percent.
The banking sector was also hit by a report that Austria's
top cooperative bank, Oesterreichische Volksbanken <OTVVp.VI>,
had been put on a watch list by the country's central bank and
its financial market regulator. []
The Austrian bank said the report was inaccurate and it was
at no risk of nationalisation.
ECONOMIC NEWS
Economic news from the U.S. was mostly downbeat. U.S.
producer prices rose faster than expected in November, while a
gauge of manufacturing in New York state unexpectedly fell this
month, creating a potential headache for the Federal Reserve.
[]
"They're both leading indicators, and it's not a nice
combination," said Philip Lawlor, strategist at Nomura in
London.
He added: "Having said that, we're in thin trading, and you
have to take the volatility with a pinch of salt.
"Inflation, or fears of inflation, could be the story next
year. Exit strategies are key. Are central banks going to be
ahead of the curve, or are they going to wait to see the whites
of the eyes of inflation?"
In European economic news, German thinktank ZEW's monthly
poll of economic sentiment declined for a third consecutive
month in December.
Helping to boost the index, Steelmaker ArcelorMittal
<ISPA.AS> rose 3 percent after UBS added the company to its
"European key calls list".
OIL BOOSTS ENERGY STOCKS
Some energy companies gained as crude oil <CLc1> rose above
$70 a barrel after falling for nine straight days, the longest
continuous decline in eight years, as traders said cold weather
was supporting prices. []
Total <TOTF.PA> rose 0.5 percent; BG <BG.L> rose 0.6
percent.
The rise for crude came despite a stronger dollar, which hit
a 10-week high against the euro, as data suggested the Federal
Reserve may wind down emergency economic support programmes more
quickly than expected.
Around Europe, Britain's FTSE 100 index <> ended the
day 0.6 percent lower; Germany's DAX index <> and France's
CAC 40 <> edged up 0.2 and 0.1 percent, respectively.
Wall Street, which hit a 14-month closing high on Monday,
was mixed around the time European bourses were closing.
The Dow Jones <> and S&P 500 <.SPX> were down 0.2 and
0.1 percent, while the Nasdaq Composite <> was up 0.2
percent.
Utilities E.ON <EONGn.DE>, EDF <EDF.PA> and RWE <RWEG.DE>
were up between 0.5 and 1.7 percent, and other rising defensives
included food producers Unilever <ULVR.L> and Danone <DANO.PA>,
both up 0.5 percent, and drugmaker Sanofi Aventis <SASY.PA>, up
0.6 percent.
Hennes & Mauritz <HMb.ST> dropped 0.9 percent after the
Swedish fashion retailer undershot expectations with a 9 percent
fall in same-store sales in November.
(Additional reporting by Dominic Lau, editing by Will Waterman)
