European shares rose on Friday at midday, with banking stocks taking the lead and commodity shares tracking higher crude and metal prices.
By 1139 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.4 percent at 1,001.14 points. The index, which gained nearly 26 percent in 2009, is down around 4 percent this year.
"Today is the day the markets have decided to have a rebound. Generally, corporate results have been good and have surprised on the upside in both the top line and the bottom line," said Mike Lenhoff, chief strategist at Brewin Dolphin.
"Later, home sales figures will be interesting to watch as what we have seen recently is a loss of momentum in this area. This is a very critical part of the U.S. economy and if we get another month of disappointment it will not be helpful."
Banks added the most points to the index. HSBC, Banco Santander, BNP Paribas and UniCredit gained 0.9 percent to 2.4 percent.
However, Lloyds fell 5.9 percent after results, with traders saying its loan-to-deposit ratio was too high, and its impairment guidance was not a bullish as some had expected.
Miners were in favour as copper rose 0.5 percent. Anglo American, Antofagasta, BHP Billiton, Rio Tinto and Xstrata were 1.4 to 2.3 percent higher.
Energy shares were higher as crude rose 0.2 percent. BG Group, BP and Total were up 0.7 to 1 percent.
NOVARTIS RISES
Drugmakers were in demand. Novartis gained 0.9 percent after it received FDA approval of menveo, a vaccine to prevent meningococcal disease.
Telecoms group Telefonica was 1.5 percent higher after posting 2009 earnings which met forecasts, and setting modest growth targets for 2010.
Saint Gobain shares rose 6.3 percent after the building materials group said it expected a strong rise in 2010 operating profit.
On the downside, Spanish wind turbine maker Gamesa shares fell 5.6 percent after it gave 2010 results forecasts dubbed as "disappointing" by analysts after close of market trade on Thursday.
Germany's largest drugmaker, Bayer lost 2.3 percent after it forecast 2010 core profit slightly below market expectations as higher feedstock costs hold back recovery at its plastics division.
Later in the session, investors will eye U.S. fourth-quarter GDP figures at 1330 GMT and U.S. existing home sales for January at 1500 GMT.
"The worry is that the economy will double dip, though we've got confirmation all round that interest rates will stay low," said Bernard McAlinden, investment strategist at NCB Stockbrokers, in Dublin.
Across Europe, the FTSE 100 index rose 0.6 percent, Germany's DAX gained 0.6 percent and France's CAC 40 was 0.7 percent higher.
