European shares were higher in early trade today, with banks and commodity shares topping the risers and Philips Electronics gaining after its third-quarter results beat forecasts.
By 0835 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.9 per cent at 1,006.91 points.
The benchmark index is up 20 percent so far this year and has gained 55 per cent since reaching a lifetime low in early March.
"There is a bit more enthusiasm in the market, based on the view that corporate figures are going to be more positive," said Justin Urquhart Stewart, director at Seven Investment Management.
Banks were the top gainers, although individual stocks were mixed in the sector. HSBC, Banco Santander and Deutsche Bank were up 0.8 to 1.4 per cent.
However, Barclays fell 0.7 per cent. The
Financial Timesreported that it is planning to spin off a £4 billion portfolio of complex credit assets as it presses ahead with a process to clean up its balance sheet.
British bank Lloyds slipped 0.2 per cent after it was reported it has lined up a syndicate of investment banks to underwrite an £11 billion rights issue.
Energy stocks featured among the best performers as crude oil rose over 1 per cent. BG Group, BP, Dana Petroleum and Total gained 0.3 to 3.6 per cent.
Dutch conglomerate Philips Electronics' shares rose 6.5 per cent after it reported a better than expected third-quarter operating profit as a result of cost reductions but the company remained cautious, seeing no recovery in many of its markets.
"Philips has had such a rocky past. It is now having a positive time and is doing better," said Howard Wheeldon, strategist at BGC Partners.
Nokia gained 2.5 per cent ahead of results on Thursday. The Finnish mobile phone maker is expected to report a 69 per cent fall in third-quarter pretax profit to €435 million after consumers cut spending in the downturn, a Reuters poll of 37 analysts showed.
Later in the week results are due from IBM, Intel, JPMorgan Chase, Goldman Sachs, Bank of America and General Electric.
The drugs sector was also on the advance after the World Health Organisation (WHO) official said that the vaccines developed against the H1N1 flu strains were yielding larger volumes than first expected.
Roche, GlaxoSmithKline and Novartis were up 0.9 to 1.2 per cent.
The only sector in the red was beverages, with Carlsberg and Heineken losing 2 to 2.4 per cent.
Across Europe, the FTSE 100 index was up 1 per cent, Germany's DAX was 1.4 per cent higher and France's CAC 40 rose 1.1 per cent.
Reuters