Europe stocks gain by midday
By Brian Gorman
LONDON (Reuters) - European shares rose by midday on Wednesday, led by banks on hopes a deal for Lloyds TSB (LLOY.L) to take over HBOS HBOS.L would go through, while investors eyed a U.S. Senate vote to salvage a banking bailout plan.
Miners tracked metal prices higher and defensive drugmakers rose, but auto stocks fell sharply, led by Daimler (DAIGn.DE) and Porsche (PSHG_p.DE).
By 12:20 p.m. the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.8 percent at 1,072.17, adding to its 1.6 percent gain on Tuesday.
However, the index has lost 29.2 percent this year.
"Today is lacklustre. People are on the sidelines, healing their wounds as far as possible, waiting for the next storm," said Giuseppe Amato, strategist at Lang & Schwarz in Germany.
"If they (U.S. legislators) don't pass the bailout, the direction is clear."
Banking stocks moved erratically, but by midday were again the top-weighted risers on the index.
HBOS HBOS.L surged 27 percent on expectations its takeover by Lloyds (LLOY.L) would go through on the existing terms. Lloyds rose 15 percent. Continued...
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