By Brian Gorman
LONDON, March 2 (Reuters) - European shares were higher at midday on Tuesday, with HSBC bouncing from Monday's negative reaction to 2009 results, and L'Oreal up on reports Nestle may buy a stake.
At 1158 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.5 percent at 1,025.06 points after gaining 1.2 percent in the previous session. The index is down 4.6 percent from a 15-month peak it hit in January, but up 58 percent from a lifetime low in March, 2009.
'We don't expect to see significant upside from this point,' said Graham Secker, equity strategist at Morgan Stanley. 'The economic indicators are rolling over, and we have got some monetary tightening, in Asia and the United States.'
'If we get some better than expected economic data, the market could move higher but our view is that the market will fail around the peak that we saw in early January.'
HSBC was up 1.5 percent, following a 5.2 percent fall on Monday, when it reported results. The banking sector was generally higher, with Allied Irish Banks up 3.5 percent even as it posted an full-year loss.
Greek banks rose, despite Germany's foreign minister saying he talk about financial aid for Greece was inappropriate for now, seeking to play down the prospect of Greece winning German help at a meeting on Friday.
National Bank, EFG Eurobank, Piraeus Bank and Alpha Bank rose 2.2-3.1 percent.
However, insurer Prudential fell 6.6 percent, extending its decline over two days to more than 17 percent. On Monday, the insurer said it would pay $35.5 billion for American International Group's Asian life insurance arm, and would undertake a $21 billion rights issue.
Across Europe, the FTSE 100, Germany's DAX and France's CAC 40 were up between 0.7-0.8 percent.
L'OREAL GAINS
The personal goods sector featured among the best performers. L'Oreal gained 3.1 percent after the Daily Telegraph reported Swiss Food group Nestle was rumoured to be in informal talks to buy Liliane Bettencourt's 31 percent stake in the French cosmetics group. Nestle was up 0.2 percent.
Elsewhere in the sector, Richemont rose 3.4 percent.
Italian eyewear maker Luxottica dropped 2.7 percent after reporting late on Monday an 8.4 percent fall in fourth-quarter net profit on falling sales.
Drugmakers were out of favour. Austrian biotech company Intercell fell 6.7 percent after posting worst than expected fourth-quarter results.
BMW gained 2.6 percent after chief executive Norbert Reithofer said at the Geneva auto show it made a profit in the U.S. market in 2009.
Daimler rose 1.1 percent. The carmaker said late on Monday it planned to develop electric cars for China with battery maker BYD. Keywords: MARKETS EUROPE STOCKS (brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters Messaging: brian.gorman.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LONDON, March 2 (Reuters) - European shares were higher at midday on Tuesday, with HSBC bouncing from Monday's negative reaction to 2009 results, and L'Oreal up on reports Nestle may buy a stake.
At 1158 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.5 percent at 1,025.06 points after gaining 1.2 percent in the previous session. The index is down 4.6 percent from a 15-month peak it hit in January, but up 58 percent from a lifetime low in March, 2009.
'We don't expect to see significant upside from this point,' said Graham Secker, equity strategist at Morgan Stanley. 'The economic indicators are rolling over, and we have got some monetary tightening, in Asia and the United States.'
'If we get some better than expected economic data, the market could move higher but our view is that the market will fail around the peak that we saw in early January.'
HSBC was up 1.5 percent, following a 5.2 percent fall on Monday, when it reported results. The banking sector was generally higher, with Allied Irish Banks up 3.5 percent even as it posted an full-year loss.
Greek banks rose, despite Germany's foreign minister saying he talk about financial aid for Greece was inappropriate for now, seeking to play down the prospect of Greece winning German help at a meeting on Friday.
National Bank, EFG Eurobank, Piraeus Bank and Alpha Bank rose 2.2-3.1 percent.
However, insurer Prudential fell 6.6 percent, extending its decline over two days to more than 17 percent. On Monday, the insurer said it would pay $35.5 billion for American International Group's Asian life insurance arm, and would undertake a $21 billion rights issue.
Across Europe, the FTSE 100, Germany's DAX and France's CAC 40 were up between 0.7-0.8 percent.
L'OREAL GAINS
The personal goods sector featured among the best performers. L'Oreal gained 3.1 percent after the Daily Telegraph reported Swiss Food group Nestle was rumoured to be in informal talks to buy Liliane Bettencourt's 31 percent stake in the French cosmetics group. Nestle was up 0.2 percent.
Elsewhere in the sector, Richemont rose 3.4 percent.
Italian eyewear maker Luxottica dropped 2.7 percent after reporting late on Monday an 8.4 percent fall in fourth-quarter net profit on falling sales.
Drugmakers were out of favour. Austrian biotech company Intercell fell 6.7 percent after posting worst than expected fourth-quarter results.
BMW gained 2.6 percent after chief executive Norbert Reithofer said at the Geneva auto show it made a profit in the U.S. market in 2009.
Daimler rose 1.1 percent. The carmaker said late on Monday it planned to develop electric cars for China with battery maker BYD. Keywords: MARKETS EUROPE STOCKS (brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters Messaging: brian.gorman.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
