* FTSEurofirst 300 up 1.1 pct by midday

* Index recovers from steep losses on Thursday

* Banks, commodities lead gainers

By Sitaraman Shankar

LONDON, Oct 9 (Reuters) - European stocks rose by midday on Thursday, breaking a three-day losing streak, as the previous session's concerted global rate cut and UK bank bailout emboldened investors to buy battered financials and commodities.

At 1108 GMT, the FTSEurofirst 300 index of top European shares was up 1.1 percent at 951.11 points, but still down more than 12 percent so far this week, placing it on track for its worst week on record.

The index sank to its lowest close since December 2003 on Wednesday as investors worried about economic growth despite concerted rate cuts by the world's top central banks.

On Thursday, banks rose, led by Royal Bank of Scotland (RBS.L: Quote, Profile, Research), which jumped 14 percent, and HBOS HBOS.L, which jumped 29 percent.