European shares rose on Friday, led by financials after talks on U.S. banking reform broke down, lowering chances of a broad overhaul of U.S. financial regulation. By 1135 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was up 0.5 percent at 1,061.17 points.The index, which gained around 26 percent in 2009, is only up 1.4 percent so far in 2010.

Banks added the most points to the index. Lloyds Banking Group (LLOY.L), Barclays (BARC.L), UniCredit (CRDI.MI) and BNP Paribas (BNPP.PA) gained 1 to 3.6 percent. "The banks in Europe have been the main focus of attention so far. The banks led the charge higher in the U.S. last night after bipartisan Senate talks over financial regulation broke down," said Joshua Raymond, market strategist at City Index. [Read the full article]

Embattled UBS AG has warned that Switzerland's financial industry is at risk unless lawmakers approve a tax treaty with the United States, and that other Swiss banks may be next to face pressure from U.S. regulators.

In a letter to parliamentarians, the banking giant said the U.S. Internal Revenue Service has collected information on the cross-border activities of about 20 Swiss banks and may soon press for a crackdown on American tax evaders at these institutions as well.

UBS urged parliament to approve an August treaty signed by the U.S. Treasury Department and Switzerland's executive Federal Council on improving cooperation in tax evasion matters.

"The risks are very considerable for the Swiss financial center and the economy as a whole if parliament were to withhold its approval," UBS said in the letter, obtained Friday by The Associated Press. The bank confirmed its authenticity. [Read the full article]

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE may open higher on Friday as better-than-expected jobs data and a rosy outlook from Potash Corp (POT.TO) boosts Canada's biggest index.

Canada's unemployment rate fell to 8.2 percent in February from 8.3 percent in January as 20,900 more people fou