European shares gain early, focus on banks

European shares were higher in early trade on Monday, with banks adding most points to the index amid thin trading, as UK markets are closed for a public holiday.

At 0721 GMT, the FTSEurofirst 300 index of top European shares was up 0.5 percent at 834.01 points.

The benchmark index rose 2.4 percent last week and posted its biggest ever monthly rise in April, rising 13 percent.

Banks added the most points to the index, with BNP Paribas, Credit Suisse and Deutsche Bank up 1.0 to 2.5 percent.

The Financial Times reported that Bank of America is working on plans to raise more than $10 billion in fresh capital while it and Citigroup Inc launched last-ditch attempts to convince the U.S. government they do not need to bolster their balance sheets.

"Experts expect that the tests indicate a further need of capital of 150 billion euros," German brokerage Close Brothers Seydler (CBK) said in a note.

"Investors are accustomed to such figures. Markets should not be hurt by the stress test results," CBK added.

Markets in Britain are closed on Monday for a public holiday, while Germany's DAX gained 1 percent and France's CAC 40 was 0.5 percent higher.