REFILE-U.S. rally, oil gains lift European stocks

(Clarifies sixth paragraph, "being granted" not "granting"

* FTSEurofirst 300 ends 0.95 percent higher

* Energy stocks add most points to index

* Banks continue to fall, down 60 pct this year

By Sitaraman Shankar

LONDON, Nov 18 (Reuters) - European shares ended higher after a choppy session on Tuesday, helped by gains in energy shares and a rally on Wall Street on reassuring results from Hewlett-Packard (HPQ.N), but weak financials capped advances.

The pan-European FTSEurofirst 300 .FTEU3 index ended 0.95 percent higher at 845.37 points, after trading in a wide range from 818.78 to 847.35. But for every company whose shares rose, one declined.

Oil shares added most points to the index as crude CLc1 steadied above $55.50 a barrel. Total (TOTF.PA), Shell (RDSa.L) and BP (BP.L) added 3.9 to 4.6 percent.

Pharmaceutical stocks seen as good defensives in volatile times also gained, with GlaxoSmithKline (GSK.L) rising 4 percent and Novartis (NOVN.VX) putting on 1.9 percent.

But banks were broadly weaker.

Britain's HBOS HBOS.L fell 15.4 percent as investors bet against alternatives to its takeover by Lloyds TSB (LLOY.L) after the UK finance minister seemed to shut the door on an alternative scheme being granted access to the government's industry recapitalisation funds.

BNP (BNPP.PA) ended 5.1 percent lower on fresh talk of a capital increase. The bank declined to comment.

Allied Irish (ALBK.I) slid 14.5 percent after Moody's placed the group on review for a possible credit rating downgrade, while Anglo Irish ANGL.I tumbled 19 percent.

Analysts said that volatility continued to be so high that a one-day gain meant little in the overall context.

"We could be at the early stages of a bottoming process but worldwide we are still moving in a very wide range," said John Haynes, strategist at Rensburg Sheppard Investment Management.