European shares rise early as results please

LONDON, Feb 14 (Reuters) – European shares rose 1.2 percent in early trade on Thursday, tracking economic data-driven gains in the United States and Asia, as investors digested broadly stronger results from Europe’s top companies.

At 0816 GMT, the FTSEurofirst 300 index of European bluechips was up 1.16 percent at 1,349.70 points, with banks and commodity stocks the top weighted gainers.

Miner Anglo American rose 3.5 percent on market talk that Rio Tinto could bid for the group.

French computer consultancy Cap Gemini and Sweden’s Swedbank jumped more than 7 percent, and French cement maker Lafarge and food group Danone both gained around 4 percent, all on strong results.

“The results from Europe have been good, but like 2003, we are in an inflection year, and in an inflection year, one needs to look forward and trailing earnings are meaningless,” said Ad van Tiggelen, senior strategist at ING Investment Management in Amsterdam.

“We are in a bear market and this is a bear market rally.”

Swiss bank UBS slipped 1.8 percent after it said it expected 2008 to be a tough year and unveiled $26.6 billion in new exposure to risky U.S. mortgages.