European markets extend gains; banks supported by Fed comments (Reuters) (17-03-2010)

LONDON, March 17 (Reuters) - European shares extended gains in mid-morning trade on Wednesday, hitting a two-month high, with banks benefitting from the U.S. Federal Reserve's pledge to keep interest rates near zero for an extended period.

By 1021 GMT, pan-European FTSEurofirst 300 index of top shares was up 0.9 percent at 1,071.04 points after touching 1,071.32, its highest level since January 15.

Banks were among the biggest gainers, with Barclays, HSBC, Societe Generale, BNP Paribas and Deutsche Bank up 0.6 to 1.3 percent.

Italy's biggest bank UniCredit rose 5.3 percent after it beat forecasts for 2009 net profit and returned to a cash dividend to shareholders.

In its comments on Tuesday, the Fed sounded more upbeat about the job market and said inflation was likely to remain subdued.

Source: Reuters