European shares rise in early trade

European shares rose this morning on the back of strong advances by banks and oil stocks.

At 9.50am, the FTSEurofirst 300 index of top European shares was up 1.5 per cent at 1,328.66 points.

British banks led gainers, rising on dividend hopes and talk that the nationalisation of Northern Rock would slow a deterioration in mortgage market conditions.

Barclays was up 5 per cent, Royal Bank of Scotland rose 3.4 per cent and HSBC gained 2.3 per cent.

Credit Suisse gained 2.9 per cent on an agency report that Qatar had bought shares in the Swiss bank.

Oil shares gained sharply, with BP, Shell and Total gaining 1-1.8 per cent as oil flirted with $96 a barrel.