Europe stocks bounce; led by banks and commodities
* FTSEurofirst 300 rises 1.8 percent
* Banks, miners gain; pharma shares fall
* Survey confirms euro zone businesses shrinking
By Brian Gorman
LONDON, Nov 21 (Reuters) - European shares rose in morning trade on Friday, led by banks and commodity stocks, recovering a part of the previous day's hefty losses and tracking overnight gains in Asia as banks climbed.
At 1003 GMT, the pan-European FTSEurofirst 300 index .FTEU3 was 1.8 percent higher at 794.80 points. But the index has lost more than 47 percent this year, hammered by a credit crisis and economic slowdown. The index fell 3.8 percent to its lowest close in five-and-a-half years on Thursday.
Some analysts said the worst may be over.
"The darkest hour is just before dawn," said Justin Urquhart Stewart, director at Seven Investment Management.
"Actions are being taken which are encouraging -- interest rates are being cut, the monetary system is being repaired, with LIBOR easing; banks are being supported.
"The actions being taken are the key difference between the 1930s and now," Urquhart Stewart said.
Among banks, Royal Bank of Scotland (RBS.L) added 4.4 percent, UBS (UBSN.VX) gained 2.7 percent and Credit Agricole (CAGR.PA) put on 2.6 percent.
Bank of Ireland (BKIR.L) was up 13.9 percent. A consortium is planning a 2.5 billion-euro to 3 billion-euro ($3.13-3.76 billion) bid for a stake in Bank of Ireland (BKIR.I) amid government plans for consolidation in the sector, the Irish Independent newspaper said on Friday.
Bank of Ireland was not immediately available for comment.
Barclays (BARC.L) rose 4.2 percent after one of the British bank's top investors said it would back its fundraising plan even though it does not like the structure of the controversial deal.
Legal & General Investment Management (LGIM), part of insurer Legal & General Plc (LGEN.L), said late on Thursday it would vote in favour of Barclays' plan to raise 7 billion pounds ($10.4 billion), including over 5 billion from Middle East investors. [nLK127711] Continued...
