European shares rose early on on Wednesday to snap a three-day losing streak as financials surged, tracking advances on Wall Street after the Federal Reserve signalled that bank nationalisations were not imminent. At 1025 GMT the FTSEurofirst 300 .FTEU3 index of top European shares was up 1.1 percent at 727.35 points, after it had fallen 1.4 percent on Tuesday to a six-year low. The index has fallen 12.6 percent so far this year. The broader STOXX 600 .STOXX index rose 1.3 percent, led by banks and oil stocks. U.S. stocks had risen late Tuesday, recovering from a 12-year low, after Federal Reserve Chairman Ben Bernanke signalled that nationalisation of big banks was not at hand, causing relief in the markets. [ID:nN24435256] In addition, U.S. President Barack Obama's speech before Congress improved sentiment among investors, despite a backdrop of grim economic data around the world. "The remarks by Bernanke and Obama have allayed investors' fears about what a nationalisation of banks might mean to them -- namely a plunging share price," said Heinz-Gerd Sonnenschein, equity strategist at Postbank in Germany. Financials were among the biggest gainers in Europe, with Deutsche Bank (DBKGn.DE), BNP Paribas (BNPP.PA) and UBS (UBSN.VX) up between 6.6 and 8.3 percent. The DJ Stoxx European banks sector index .SX7P was the strongest sectoral gainer, up 4.2 percent, and has fallen 25.2 percent since the beginning of the year. Around Europe, UK's FTSE 100 index .FTSE rose 0.9 percent, Germany's DAX index .GDAXI was up 1.2 percent and France's CAC 40 .FCHI was up 1.1 percent.

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