Credit Suisse, Novartis lead European shares up

By Peter Starck

FRANKFURT, April 24 (Reuters) - European shares rose on Thursday as gains for bank Credit Suisse (CSGN.VX: Quote, Profile, Research) and drugmaker Novartis (NOVN.VX: Quote, Profile, Research) outweighed losses for mining companies, which fell on worries about slower economic growth.

Stronger than expected quarterly earnings from engineering group ABB (ABBN.VX: Quote, Profile, Research) and chemical and pharmaceutical maker Bayer (BAYG.DE: Quote, Profile, Research) also helped underpin European stock markets.

The FTSEurofirst 300 index of top European shares closed 0.2 percent higher at 1,315.78 points, having fallen as much as 1.3 percent earlier in the session.

Europe's benchmark index recovered in late trade, tracking a bounce in U.S. financial stocks which saw Wall Street's leading indexes .DJI .SPX .IXIC switch into positive territory despite weaker than expected U.S. new home sales data.

Equity market performance across Europe was mixed, with Britain's FTSE 100 .FTSE down 0.5 percent and the French CAC 40 .FCHI 0.3 percent lower while Germany's DAX .GDAXI rose 0.4 percent and the Swiss SMI .SSMI jumped 1.9 percent.

Credit Suisse rose 4.2 percent despite booking a further 5.3 billion francs ($5.18 billion) in credit-linked writedowns.

"Credit Suisse succeeded to reduce the risk exposures significantly throughout the first quarter of 2008 which reduces the capital at risk in coming quarters," Sal. Oppenheim said in a research note.

Dresdner Kleinwort said Credit Suisse's tier-1 capital ratio of 9.8 percent "may relax those concerned about a capital increase."