European shares rise early; banks, commods gain

LONDON, Sept 16 (Reuters) - European shares rose on Wednesday, boosted by banks and commodities, with comments by U.S. Federal Reserve chief Ben Bernanke that the recession was probably over also helping to lift sentiment.

By 0709 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was up 0.6 percent at 998.07 points, rising for the eighth sesssion out of nine.

The FTSEurofirst 300 .FTEU3 index of top European shares, which is up 20 percent so far in 2009, is still down 14 percent from its level in mid-September 2008 before the bankruptcy of Lehman Brothers.

"Both sides of the Atlantic are saying we are now out of recession, but growth is going to be slow and anaemic," said Justin Urquhart Stewart, director at Seven Investment Management.

"This is where you are seeing a separation between economic data and market attitude. The market still has an attitude that money is to be invested and it is fair value, but the economy is showing that there is still going to be weakness," he said.

Federal Reserve Chairman Ben Bernanke said on Tuesday that the worst U.S. recession since the Great Depression was probably over, but the recovery would be slow and it would take time to create new jobs. [ID:nN1576055]

Banks added the most points to the index, with Lloyds Banking Group (LLOY.L) up 1.5 percent. HSBC (HSBA.L), Barclays (BARC.L), UBS (UBSN.VX) were up 0.9 to 1.3 percent.

Commodity stocks were higher as crude CLc1 stayed at $70 a barrel and metal prices rose. Oil giants BG Group (BG.L), BP (BP.L), Royal Dutch Shell (RDSa.L) and Tullow Oil (TLW.L) were up 0.4 to 2.7 percent.

Miners Anglo American (AAL.L), Antofagasta (ANTO.L), BHP Billiton (BLT.L), Eurasian Natural Resources Corporation (ENRC.L), Rio Tinto (RIO.L) and Xstrata (XTA.L) were 2.4 to 3.6 percent higher. (Reporting by Joanne Frearson)