Banks, energy power Europe shares to close higher

* FTSEurofirst 300 jumps 2.4 percent

* Financials gain on hopes recession abating

* Energy shares track higher crude; autos rise

By Atul Prakash

LONDON, May 18 (Reuters) - European equities closed higher on Monday as financial stocks climbed on hopes a recession in top global economies was abating, while energy shares tracked higher crude oil prices.

The FTSEurofirst 300 index of top European shares closed 2.4 percent higher at 859.88 points after falling as low as 827.32. The index, which slumped 45 percent in 2008, is up 3 percent this year.

Financials were the top gainers, with Standard Chartered Bank (STAN.L: Quote, Profile, Research) rising 8.5 percent, HSBC (HSBA.L: Quote, Profile, Research) up 4.4 percent, Barclays (BARC.L: Quote, Profile, Research) gaining 5 percent, Commerzbank (CBKG.DE: Quote, Profile, Research) up 9 percent, KBC (KBC.BR: Quote, Profile, Research) up 13 percent, Aegon (AEGN.AS: Quote, Profile, Research) rising 11 percent and UniCredit (CRDI.MI: Quote, Profile, Research) jumping 13.5 percent.

"The market is bouncing back after last week's weakness and is showing that investors are prepared to increase their risk appetite and continue to buy into the prospects of improving economic background," said Henk Potts, equity strategist at Barclays Stockbrokers.