* STOXX 600 up 0.2 pct
* Nokia jumps after settles dispute with Apple
* Upgrade boosts Banco BPM
* Spanish banks recover
(Recasts, adds quotes and detail, updates prices)
By Kit Rees
LONDON, May 23 Nokia shares jumped more than 6
percent on Tuesday to their highest levels in more than a year,
joined by a rise in banking stocks which helped European stock
markets edge higher.
The pan-European STOXX 600 index rose 0.2 percent,
gaining pace after a sluggish opening as banking stocks headed
higher. Germany's DAX was up 0.3 percent while euro
zone blue chips gained 0.6 percent.
European tech firms were standout performers, with
the sector up more than 1 percent after shares in Nokia
jumped 6.7 percent to their highest level since
February 2016 following the settlement of a patent dispute with
Positive economic data also supported sentiment, with PMI
surveys for May showing that businesses across the euro zone
kept up April's impressive growth rate.
"It's a kind of risk-on environment, and Europe's benefits -
relatively low currency, a relatively attractive valuation
against the United States and many other regions, and of course
being a developed market - should enable it to continue to
outperform," Ken Odeluga, market analyst at City Index, said.
Upgrades also helped the top STOXX gainers, with Banco BPM
rising 4 percent after Barclays upgraded the Italian
lender to "overweight" from "equal weight".
Analysts at Barclays cited Banco BPM's attractive valuation
compared to Italian peers as well as progress with its portfolio
of bad loans.
"Banco BPM has much work to do reducing its NPLs and also
raising its coverage ... yet management has made a good start in
1Q17," analysts at Barclays said in a note, referring to Banco
BPM's non-performing loans.
Overall banking stocks gained more than 1 percent,
with shares in Spanish banks Banco de Sabadell,
Santander and BBVA regaining losses from the
previous session when they were hit by political worries after
Spain's Socialists re-elected hardliner Pedro Sanchez.
Spain's IBEX gained 0.8 percent.
Basic resources shares retreated. BHP Billiton
and Glencore fell as the price of copper edged
lower, while precious metals miners Polymetal and
Randgold Resources were also weaker as the gold price
In the UK, the FTSE 100 was up 0.2 percent, hovering
close to record highs, as a weaker sterling continued to
underpin gains in the exporter-heavy index.
Campaigning ahead of the June 8 general election was
suspended after at least 22 people, including some children,
were killed in a suicide attack in Manchester overnight.
There was little direct market impact seen from the attack,
although shares of theme park operator Merlin Entertainments
were off around 1 percent and the top losers on the
(Editing by Vikram Subhedar and Ed Osmond)