* FTSEurofirst 300 index closes up 0.1 percent
* BP bounces off lows; firm tries again to curb oil spill
* U.S. pending home sales jump to six-month high in April
Harpreet Bhal
LONDON, June 2 (Reuters) - European shares edged higher on
Wednesday, as upbeat U.S. housing data boosted hopes of a
recovery in the world's largest economy, offsetting falls in
banks on concerns over the outlook for growth in the euro zone.
The pan-European FTSEurofirst 300 <> index closed up
0.1 percent at 1,003.58 points, to end higher for the third
straight session in a choppy session where the index swung
between positive and negative territory.
Data showed pending sales of previously owned U.S. homes hit
a six-month high in April, lifting shares on Wall Street.
[]
BP <BP.L> rebounded off lows to end 0.1 percent lower, after
a sharp 13 percent drop in the previous session. Traders said
there was buying interest in the stock from some hedge funds and
investors who are betting the stock will rebound from recent
weakness. []
The company forged ahead with its latest efforts to curb the
flow of oil from its leaking well as the United States began
investigating the spill, with U.S. Attorney General Eric Holder
saying that "if we find evidence of illegal behaviour, we will
be forceful in our response." []
On the downside, banks were pressured by persistent fears
the euro zone's debt crisis could jeopardise economic recovery
in the region, with Barclays <BARC.L>, HSBC <HSBA.L>, Societe
Generale <SOGN.PA> and Deutsche Bank <DBKGn.DE> off 0.3 to 2.2
percent.
"Investors are still concerned that the euro zone debt
problem is not over and it will keep hanging over the equity
market until the market gets to a more reasonable valuation,"
said Koen de Leus, economist at KBC Securities.
The FTSEurofirst 300 index has lost around 10 percent since
mid-April when fears of a sovereign debt crisis in the euro zone
prompted investors to abandon riskier assets.
Among the gainers, Portugal Telecom <PTC.L> rose 1.5 percent
after Spain's Telefonica <TEF.MC> raised its bid for PT's stake
in Brazilian mobile phone company Vivo <VIVO4.SA> to 6.5 billion
euros ($7.9 billion) from 5.7 billion euros. []
GlaxoSmithKline <GSK.L> added 2 percent after Jefferies
raised its rating for the company to "buy" from "hold".
Within the sector, AstraZeneca <AZN.L>, Sanofi-Aventis
<SASY.PA> and Novartis <NOVN.VX> added 0.3 to 1.6 percent.
Prudential <PRU.L> fell 2.5 percent after abandoning its
plan to buy AIG's Asian life unit AIA for $35.5 billion, bowing
to shareholder criticism over the price it had agreed to pay and
leaving its management under fire.
PLANNED LAYOFFS STALL
The number of planned layoffs at U.S. companies in May was
almost unchanged from April, suggesting employers are more
upbeat about the economic outlook, a report by global
outplacement consultancy Challenger, Gray & Christmas, Inc.
showed [].
The report comes days ahead of the government's
much-anticipated monthly U.S. payrolls report, due on Friday,
which is forecast to show non-farm payrolls rose by 513,000 in
May after climbing 290,000 in April.
In Spain the jobless rate -- the highest in the euro zone --
fell at its fastest pace for five years in May, offering hope
for its battered labour market, but the economic outlook
remained gloomy and consumer confidence saw a record fall in the
same period. [ID:nLDE6510LC
Across Europe, Britain's FTSE 100 <> shed 0.2 percent,
Germany's DAX <> was flat and France's CAC 40 <> fell
0.1 percent.
(Editing by Louise Heavens)
