PARIS, April 6 (Reuters) - European stocks rose on Wednesday, adding to their three-week rally as investors looked beyond the European Central Bank's expected rate rise, brushing aside Portugal's debt woes and piling into recently-hit banks.
The FTSEurofirst 300 index of top European shares unofficially ended 0.3 percent higher at 1,147.64 points in strong volume, gaining ground for the 13th time in 15 sessions and closing above its 50-day moving average for the first time since early March, fuelling expectation of more gains in the coming sessions.
Banking stocks, which had missed the broad market's recovery rally that started in mid-March, featured among the top gainers on Wednesday, staging a catch-up rally on the eve of the ECB's interest rate decision and comments.
"There's been hypersensitivity on the market and especially on banks, but at the end of the day, risks related to sovereign debt have been exaggerated and banking stocks have been excessively hammered," said Marc Renaud, president and fund manager at Paris-based Mandarine Gestion, which has 1.8 billion euros ($2.6 billion) in assets under management.
BBVA rose 3.2 percent, HSBC added 2 percent and Societe Generale gained 2.8 percent.
Investors were relieved to see Portugal placing all of its 1-billion euro T-bill auction despite a threat by local banks to stop buying government debt, and brushed aside concerns over the sharp rise in yields. (Reporting by Blaise Robinson)