Europe shares retain gains after ECB holds rate

                                
 * FTSEurofirst 300 index up 1.1 pct
                                
 * ECB and Bank of England hold rates, as expected
                                
 * Miners, banks gain; Alcoa results boost sentiment

                                
 By Brian Gorman
                                
 LONDON, Oct 8 (Reuters) - European shares remained higher
after the European Central Bank kept its key interest rate at 1
percent, with  U.S. aluminium group Alcoa's <AA.N> having got
third-quarter earnings season off to a positive start.
                                
 At 1235 GMT, the FTSEurofirst 300 <.FTEU3> index of top
European shares was up 1.1 percent at 999.30 points.
                                
 The ECB kept its main refinancing rate unchanged at a record
low of 1 percent on Thursday, as expected by
economists.[ID:nL8111212]
                                
 "There was no surprise, and no reason for a surprise," said
Howard Wheeldon, strategist at BGC Partners, in London.
                                
 "Nothing has changed. Markets go on very much as before with
positive momentum. But the data over the coming months may
suggest we have raced a bit too far ahead of ourselves."
                                
 The European benchmark is up more than 54 percent from a
record low in early March, as investors have become more
confident on the prospects of economic recovery. 
                                
 Earlier, the Bank of England kept interest rates on hold at
a record low of 0.5 percent and left 175 billion pounds ($281.2
billion) of quantitative easing in place. [ID:nL8222498]
                                
  Kicking off the U.S. third-quarter earnings season, Alcoa
posted a surprise profit on Wednesday through cost cutting and
higher aluminium prices after three consecutive quarterly
losses. [ID:nL892419]
                                
  Miners were among the best performers as metal prices were
up across the board and gold hit a fresh record high <.XAU=>.
                                
 Vedanta <VED.L> led the sector higher, up 3.2 percent after
the India-focused miner posted stronger second quarter output of
refined zinc and iron ore. [ID:nL7642307]
                                
 Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Lonmin <LMI.L>, Eurasian Natural Resources Corporation
<ENRC.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L> gained 1.9-3.7
percent.
                                
 Banks were also stronger. BBVA <BBVA.MC>, Banco Santander
<SAN.MC> and UniCredit <CRDI.MI> were up 0.6 to 2.1 percent.
                                
 The macro environment is improving and third-quarter
earnings are so-far-so-good, and look like they will be as
supportive as second quarter," said Henk Potts, strategist at
Barclays Wealth.
                                
 "Our expectation is that we will hang on to the explosive
gains (since March) and potentially add to them."
                                
  Across Europe, the FTSE 100 <.FTSE> index was up 0.8
percent, Germany's DAX <.GDAXI> was 1.4 percent higher and
France's CAC 40 <.FCHI> gained 1.5 percent.
 (Additional reporting by Simon Falush and Joanne Frearson;
Editing by Rupert Winchester)