* FTSEurofirst 300 up 0.3 pct in afternoon trade
* Pharmaceuticals, miners among top gainers
* Dubai debt delay news forces investors to be cautious
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, Nov 25 (Reuters) - European shares were higher in a
choppy afternoon session on Wednesday, with drugs and mining
stocks among the top gainers, after a spate of mixed U.S.
economic data sent the market in and out of positive territory.
But gains were limited following news that Dubai's
government will ask creditors for two of its flagship firms for
a debt standstill, sending the cost of insuring its debt against
default soaring and bond prices tumbling. []
At 1513 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.3 percent at 1,019.61 points after a
swinging between a high of 1,026.85 and a low of 1,015.76.
The index, which slumped 45 percent last year, has surged 58
percent since reaching a record low in early March, boosted by
improving macro-economic data and better-than-expected company
results.
Figures showed the number of U.S. workers filing new
applications for jobless insurance tumbled last week by a
surprisingly large amount to the lowest level in more than a
year. []
Weekly jobless claims fell below 500,000 for the first time
since January and consumer spending rose more than anticipated,
but durable goods orders fell 0.6 percent in November,
underscoring the shaky road to recovery for the U.S. economy.
U.S. home sales data and readings from the University of
Michigan consumer confidence surveys were generally supportive.
"On balance the economic data is supportive of a sustainable
economic recovery and still supportive to the equity markets,"
said Bernard McAlinden, market strategist at NCB Stockbrokers.
"The weekly jobless numbers are good news and heading in the
right direction. Both initial claims and continued claims were
lower than expected and are an indication of a labour market
coming back towards balance," he added.
European drugmakers were among the top gainers, with
AstraZeneca <AZN.L>, GlaxoSmithKline <GSK.L>, Merck <MRCG.DE>,
Novartis <NOVN.VX>, Novo Nordisk <NOVOb.CO>, Roche Holding
<ROG.VX>, Sanofi-Aventis <SASY.PA>, Shire <SHP.L> rising between
0.5 and 2.3 percent.
Miners got strength from higher metals prices, with spot
gold <XAU=> hitting another record high and copper <MCU3>,
aluminium <MAL3> and nickel <MNI3> rising 0.6 to 1 percent. BHP
Billiton <BLT.L>, Anglo American <AAL.L>, Antofagasta <ANTO.L>
and Xstrata <XTA.L> rose 1.1 to 2.6 percent.
The VDAX-NEW volatility index <.V1XI>, a measure of investor
risk appetite or aversion, was down 1.6 percent after hitting a
14-month low. The lower the volatility index, which is based on
sell- and buy-options on Frankfurt's top-30 stocks <0#.GDAXI>,
the higher is investors' appetite for risky assets such as
equities.
Across Europe, Britain's FTSE 100 index <>, Germany's
DAX <> and France's CAC 40 <> were 0.2 to 0.5 percent
higher.
Wall Street was higher in early trade. The Dow Jones <>,
S&P 500 <.SPX> and Nasdaq Composite <> were up between 0.1
and 0.3 percent.
(Additional reporting by Brian Gorman and Joanne Frearson;
Editing by Mike Nesbit)
((atul.prakash@reuters.com; +44 20 7542 6189; Reuters
Messaging: atul.prakash.reuters.com@reuters.net))
