Europe shares rise; banks gain; Dubai fears ease

European shares rose in early trade on Monday, extending their wining streak to three sessions as Dubai debt fears eased, with banks the major gainers.

By 0808 GMT, the FTSEurofirst 300 index of leading European shares was up 0.9 percent at 1,018.71 points.

Investor fears were eased after Abu Dhabi bailed out neighbouring Dubai on Monday with $10 billion in surprise aid for debt-laden Dubai World, but Dubai said creditors still needed to approve a standstill on outstanding debt.

"The Abu Dhabi support for Dubai World is good news and relieves some of the worries. Banks will probably do better on the Dubai news," said Bernard McAlinden, market strategist at NCB Stockbrokers.

Banks added the most points to the index. HSBC, Standard Chartered, Banco Santander, Barclays and Lloyds Banking Group were up 1.6 to 5.3 percent.

Commodity stocks were in demand. Out of the oils, BG Group, BP and Total were up 0.5 to 0.9 percent, while miners Anglo American, Antofagasta and Xstrata gained 0.8 to 1.5 percent.