European shares were higher in early trade on Monday, 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 percent at 1,006.91 points.
The benchmark index is up 20 percent so far this year and has gained 55 percent 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 percent.
However, Barclays fell 0.7 percent. The Financial Times reported that it is planning to spin off a 4-billion-pound ($6.35 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 percent after the Sunday Times reported it has lined up a syndicate of investment banks to underwrite an 11 billion-pound ($17.6 billion) rights issue.
Energy stocks featured among the best performers as crude oil rose over 1 percent. BG Group, BP, Dana Petroleum and Total gained 0.3 to 3.6 percent.
PHILIPS ELECTRONICS SOARS
Dutch conglomerate Philips Electronics' shares rose 6.5 percent 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 percent ahead of results on Thursday. The Finnish mobile phone maker is expected to report a 69 percent fall in third-quarter pretax profit to 435 million euros ($640 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 percent.
The only sector in the red was beverages, with Carlsberg and Heineken losing 2 to 2.4 percent.
Across Europe, the FTSE 100 index was up 1 percent, Germany's DAX was 1.4 percent higher and France's CAC 40 rose 1.1 percent.
