Alcoa results help push European shares higher

                                
 * FTSEurofirst 300 index up 1.2 pct
                                
 * Miners, banks gain
                                
 * Alcoa results boosts sentiment

                                
 By Joanne Frearson
                                
 LONDON, Oct 8 (Reuters) - European shares were higher in
early trade on Thursday as a surprise quarterly profit from U.S.
aluminium group Alcoa <AA.N> boosted market sentiment, with
banks and mining stocks the biggest gainers.
                                
 By 0834 GMT, the FTSEurofirst 300 <.FTEU3> index of top
European shares was up 1.2 percent at 1,000.41 points, ahead of
the European Central Bank and the Bank of England's interest
rate decisions.
                                
 The benchmark slipped 0.4 percent on Wednesday. It is up 20
percent this year and has surged almost 55 percent since hitting
a record low in early March.
                                
 Alcoa posted a surprise profit on Wednesday through cost
cutting and higher aluminium prices after three consecutive
quarterly losses. [ID:nL892419]
                                
 "Alcoa had better than anticipated results, which is good.
It is now all about anticipating quarter-three earnings. There
is a general sense that quarter-three earnings are going to be
more positive than expectations," said Bernard McAlinden, market
strategist at NCB Stockbrokers.
                                
 Miners featured among the best performers. Anglo American
<AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>, Eurasian
Natural Resources Corporation <ENRC.L>, Rio Tinto <RIO.L> and
Xstrata <XTA.L> gained 2.5 to 4.1 percent.
                                
 A drop in the Australian jobless rate also helped fuel
positive sentiment about the demand for raw materials.
[ID:nSYD431125]
                                
 Banks added the most points to the index. HSBC <HSBA.L>,
Banco Santander <SAN.MC> and Societe Generale <SOGN.PA> were up
0.8 to 2.1 percent.
                                
 But Lloyds Banking Group <LLOY.L> missed out, shedding 2.8
percent. The Financial Times reported the part-nationalised
lender was sounding out investors about a 15 billion pound ($24
billion) rights issue to help it avoid a government scheme to
insure against credit losses. [ID:nL7421716]
                                
 
                                
 ABB GAINS
                                
 Swiss engineering group ABB <ABBN.VX> gained 3.2 percent
after it said it had renewed a $2 billion revolving credit
facility to replace an existing facility signed in 2005 and due
to expire in 2010. [ID:nL899351]
                                
 The world's biggest truckmaker, Daimler <DAIGn.DE>, was 2.3
percent higher after it said it could be profitable at current
sales levels and is seeing evidence that the U.S. truck market
has bottomed. [ID:nN07469948]
                                
 "After a lacklustre day yesterday, the markets are back in
buying mode. Everything is painting the picture that the global
economy is back in better health," said Jim Wood-Smith, head of
research at Williams de Broe.
                                
 On the downside, Ladbrokes <LAD.L>, Britain's biggest
bookmaker, fell 6.2 percent after it said it planned to raise
275 million pounds through a rights issue priced at a discount
of nearly 50 percent to its closing price on Wednesday.
[ID:nL8114120]
                                
 Later in the session, investors are likely to eye rate
decisions by the Bank of England and the European Central Bank.
                                
 The European Central Bank is expected to keep interest rates
at a record-low 1.0 percent on Thursday and its head Jean-Claude
Trichet will probably caution against high hopes of a speedy
economic recovery. [ID:nL7664834]
                                
 The Bank of England rate-setters are likely to sit tight and
leave Britain's loose monetary policy unchanged this month,
waiting until updated economic forecasts in November before
deciding whether to alter the setting. [ID:nL586538]
                                
 Across Europe, the FTSE 100 <.FTSE> index was up 0.9
percent, Germany's DAX <.GDAXI> was 1.2 percent higher and
France's CAC 40 <.FCHI> gained 1.4 percent.
 (Editing by Rupert Winchester)