0758 GMT [Dow Jones] Expectations that a stress test on U.K. banks will show positive results, added to good banking earnings news from the U.S., are lifting banks, analysts say. "The (test) results may turn market sentiment around by increasing the visibility for the EU banking sector, where uncertainties have grown following the sovereign debt crisis," Daiwa says. Banks are also reacting to news that State Street Corp. (STT) will report better-than-expected 2Q results as earnings season kicks in. Lloyds Banking (LYG) biggest gainer, +4.5% at 61p. Standard Chartered (STAN.LN)--only large U.K. bank not participating in stress test--is up 0.9% at GBP17.09. (patricia.kowsmann@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 08, 2010 03:58 ET (07:58 GMT)