Europe stocks bounce; led by banks and commodities

* FTSEurofirst 300 rises 1.8 percent

* Banks, miners gain; pharma shares fall

* Survey confirms euro zone businesses shrinking

By Brian Gorman

LONDON, Nov 21 (Reuters) - European shares rose in morning trade on Friday, led by banks and commodity stocks, recovering a part of the previous day's hefty losses and tracking overnight gains in Asia as banks climbed.

At 1003 GMT, the pan-European FTSEurofirst 300 index .FTEU3 was 1.8 percent higher at 794.80 points. But the index has lost more than 47 percent this year, hammered by a credit crisis and economic slowdown. The index fell 3.8 percent to its lowest close in five-and-a-half years on Thursday.

Some analysts said the worst may be over.

"The darkest hour is just before dawn," said Justin Urquhart Stewart, director at Seven Investment Management.  Continued...