European shares rose by midday on Monday as higher metal prices supported mining stocks, with investors awaiting earnings news from major U.S. banks such as Citigroup and Bank of America this week.
By 1140 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.7 percent at 1,059.79 percent. The index gained 26 percent in 2009 and is up 64 percent since reaching a lifetime low in March last year.
"I think there is hope that earnings season overall may not be that bad. At the start of the season there is usually some scepticism," said Gerhard Schwarz, head of global equity strategy at UniCredit in Munich.
"But, I think overall the fourth-quarter is expected to be in-line or above expectations and we have already seen some good earnings from Intel."
The U.S. market is closed on Monday for a holiday. But, companies to report this week in the banking sector include Bank of America, Citigroup, Morgan Stanley and Goldman Sachs.
Other major companies to report quarterly earnings include IBM, General Electric and Google.
Miners featured among the top risers as metal prices gained. Copper was up 1.9 percent and gold, platinum and palladium hit fresh multi-month highs.
Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation, Rio Tinto and Xstrata rose 1.3 to 2.7 percent.
CADBURY SHINES
Food producers advanced, with Cadbury gaining 1.7 percent on anticipation of a higher bid from Kraft Foods.
Utilities were in demand. However, International Power pared earlier gains and was only up 4.6 percent after a source told Reuters GDF Suez was in talks with the company about a possible asset swap.
Earlier, International Power had traded at a 15-month high after the Sunday Times reported a takeover bid was on the cards.
GDF Suez was up 1.5 percent.
"There's enough momentum for the rally to continue, but that's the short term. The market must have a correction at some stage, perhaps when stimulus packages are withdrawn around the globe," said Justin Urquhart Stewart, director at Seven Investment Management.
On the downside, Greek banks fell on worries that the EU may ask for additional measures to correct the country's fiscal woes.
Alpha Bank, Bank of Piraeus and EFG Eurobank lost between 2 and 3.9 percent.
However, most other banks were in positive territory. UK banks Barclays, Lloyds Banking Group and Standard Chartered were up 0.8 to 3.2 percent.
Across Europe, the FTSE 100 index was up 0.7 percent, Germany's DAX was 0.5 percent higher and France's CAC 40 gained 0.6 percent.
