After paring gains on Nokia, Merrill knocks Europe further (Reuters) (17-04-2008)

PARIS, April 17 (Reuters) - Around midday on Thursday European stocks were balancing between gains in the banking sector and losses due Nokia's results and outlook, while shares in French bank Societe Générale soared 5.3 percent after a Goldman Sachs upgrade.

At 1145 GMT, the FTSEurofirst 300 index of top European shares was flat at 1,303.29 points. The index gained 1.7 percent on Wednesday.

Merrill Lynch & Co Inc announced a third losing quarter with losses of $1.9 billion, after taking several billion dollars of writedowns for subprime mortgages and other risky assets.

Around Europe, Germany's DAX index was up 0.4 percent, UK's FTSE 100 index lost 0.3 percent and France's CAC 40 rose 0.6 percent.

Nokia was the largest drag on the European equity markets, sinking 10 percent after the world's biggest maker of mobile phones said quarterly underlying earnings rose in line with expectations and said it now expected the cellphone market to fall in euro terms in 2008.

Swiss drug maker Roche (ROG.VX: Quote, Profile, Research) also fell, losing 4 percent after missing forecasts for first-quarter sales, hit by plunging Tamiflu revenue and a slowing pace of growth in cancer drugs.

The FTSEurofirst 300 index is still down 13.5 percent on the year, dragged lower by fears of a U.S. recession and the impact of the credit crisis that has forced banks to write off assets and seek emergency capital increase.

Banks gained ground on Thursday, with BNP Paribas up 2.2 percent, Royal Bank of Scotland up 2 percent and Banco Santander up 1.s percent.

Source Reuters