RTRS: European shares gain early; commods, autos support
LONDON, Dec 15 (Reuters) - European stocks climbed in early trade on Monday, helped by stronger mining shares that rose on the back of firmer metals prices, while carmakers gained on revived bailout hopes for the battered U.S. auto sector.
At 0816 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 1.4 percent at 840.90 points. But the benchmark has lost 44 percent so far this year.
Automakers were also higher. BMW (BMWG.DE: Quote, Profile, Research, Stock Buzz), Daimler AG (DAIGn.DE: Quote, Profile, Research, Stock Buzz), Porsche (PSHG_p.DE: Quote, Profile, Research, Stock Buzz), Peugeot (PEUP.PA: Quote, Profile, Research, Stock Buzz), Renault (RENA.PA: Quote, Profile, Research, Stock Buzz), Fiat (FIA.MI: Quote, Profile, Research, Stock Buzz) were up 1-3.9 percent.
The White House said on Friday the administration would consider using part of the Treasury's $700 billion bailout package for financial institutions to keep the U.S. Big 3 automakers afloat after a bailout legislation failed in the Senate.
However, U.S. President George W. Bush said on Monday an announcement on a auto industry rescue was not imminent.
"Whilst this (auto sector bailout) will give us an immediate boost, there are still major concerns with financials, retailers and property stocks," said Chris Hossain, senior sales manager at ODL Securities. "The financials will remain in focus following fraud allegations surrounding Madoff hedge funds. Focus will now turn to who has, and who hasn't got exposure to his hedge funds."
Three European banks announced a total of about $3.8 billion in exposure to an investment fund run by Bernard Madoff, the U.S. investor accused of running a $50 billion "Ponzi" scheme.
Across Europe, the FTSE 100 index .FTSE was 1 percent up, Germany's DAX .GDAXI rose 1.9 percent and France's CAC 40 .FCHI was 1.2 percent higher.
