* FTSEurofirst 300 up 0.1 percent
* Trading thin; DAX volume 5.2 pct of 90-day daily average
* Technology firms in demand; basic resources shares down
By Atul Prakash
LONDON, Dec 28 (Reuters) - European shares edged higher, led
by healthcare and technology stocks, in holiday-thinned trade on
Tuesday with London markets still closed.
At 0904 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.1 percent at 1,138.79 points after
falling 0.9 percent in the previous session.
Technology shares provided support, with a sector index
<.SX8P> up 0.4 percent and Ericsson <ERICb.ST> rising 1 percent.
Alcatel Lucent <ALUA.PA> rose 1.9 percent after it agreed to
pay more than $137 million to settle U.S. charges it paid
millions of dollars in bribes to foreign officials to win
business in Latin America and Asia. []
"It will be a quiet session as many traders are on holidays,
but there are a lot of things that are hanging over the market.
People will get cautious because of China, the real estate
situation in the United States and austerity plans in Europe,"
said Koen De Leus, strategist at KBC Securities, in Brussels.
"China is a good indicator of what commodities are going to
do. I expect that in the coming months we could have a
correction in commodities."
China's central bank raised interest rates on Saturday for
the second time in just over two months as it stepped up its
battle to rein in stubbornly high inflation.
ArcelorMittal <ISPA.AS>, the world's largest steelmaker fell
0.3 percent, while steel tube-maker Tenaris <TENR.MI> was down
2.9 percent. Prices of London-listed mining shares were not
available as the British market was closed for a holiday.
OILS GAIN
Energy shares were helped by crude oil, which rose above $91
a barrel to hover below a 26-month high hit in the previous
session, helped by a weaker dollar and hopes that a major snow
storm on the U.S. east coast would stoke demand for heating oil.
Total <TOTF.PA> rose 0.4 percent, while oil-services company
Bourbon <GPBN.PA> gained 0.6 percent.
European shares remain relatively cheaper despite December's
sharp rally, with the STOXX Europe 600 carrying a forward P/E
ratio of 10.9, well below a 10-year average of 13.8, according
to Thomson Reuters Datastream.
The FTSEurofirst 300, which hit a 27-month high last week,
is up 6.7 percent in December and on track to record its best
Christmas rally since 1999. It is up 8.9 percent on the year,
while the broader STOXX Europe 600 <> is up 10 percent.
Across Europe, Germany's DAX <> was flat and trading
volumes were 5.2 percent of its 90-day daily average. France's
CAC 40 <> rose 0.2 percent, with volumes at 4.6 percent of
its three-month daily average.
(Editing by Dan Lalor)
