Europe shares hit highest close in nearly 4 months

                                
 * FTSEurofirst 300 index rises 1.4 pct; 6th day of gains
                                
 * Index now up 33 percent from March 9 low
                                
 * Banks top gainers; BNP jumps 7.3 pct after results
                                
 * Miners advance as metal prices gain
                                
 By Brian Gorman
                                
 LONDON, May 6 (Reuters) - European shares rose to their highest close in
nearly four months on Wednesday, led by financials, and boosted by encouraging
corporate results and a slowdown in the pace of private sector U.S. job losses.
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares rose 1.4 percent
to 858.55 points, its highest close since January 9. The index gained for the
sixth straight day and is now up 33 percent from its March 9 lifetime low.
                                
 U.S. private-sector job losses slowed much more than expected in April,
hitting their lowest since November last year, according to a report by ADP
Employer Services. ADP said private employers cut 491,000 jobs in April versus a
revised 708,000 lost in March, originally reported as a loss of 742,000 jobs.
                                
 Economists expected 650,000 private-sector job cuts in April, according to a
Reuters poll. [ID:nL6988685]
                                
 The report is the latest in a series of data suggesting the severe U.S.
recession may be bottoming out, though it is too early to say recovery is
underway.
                                
 Analysts said optimism was growing that the actions of governments and
central banks to combat recession were working.
                                
 "The markets are concluding that policymakers have been both astute and
assertive," said Mike Lenhoff, chief strategist and head of research at Brewin
Dolphin Securities, in London.
                                
 However, the value of the ADP data is still questioned by some analysts.
 Lenhoff said: "The market is now paying more attention to forward-looking
indicators such as PMIs, rather than backward-looking data, such as GDP (which
has continued to show major economies contracting)." 
                                
 Financial stocks were among the top gainers.
                                
 BNP Paribas <BNPP.PA>, France's biggest bank by market capitalisation, rose
7.3 percent after posting first-quarter profits well ahead of forecasts, helped
by higher earnings at its retail and investment banking operations.
[ID:nL6247697]
                                
HSBC <HSBA.L>, Standard Chartered <STAN.L> and UniCredit <CRDI.MI> rose
between 4.4 and 9.1 percent.
                                
 A key index of services business activity in the euro zone staged its
biggest one-month rise since December 2001 and firms were even more optimistic
about the future, suggesting the worst phase of a severe recession has probably
passed. [ID:nL6941085]
                                
 Investors played down reports that Bank of America <BAC.N> may need as much
as $34 billion in fresh capital.
                                
 About 10 of the 19 U.S. banks being stress-tested are expected to need more
capital buffers, a person familiar with the official talks has said. The person
was not authorized to speak because the results are not public. [ID:nN05520304]
                                
 Around Europe, Britain's FTSE 100 <.FTSE> closed 1.4 percent higher, the
German DAX <.GDAXI> gained 0.6 percent and the French CAC 40 <.FCHI> added 1.8
percent.
                                
 
                                
 MINERS RISE
                                
 Miners gained, tracking metals prices higher, as economic sentiment improved
and boosted the demand outlook. Tin prices reached five-year highs, while copper
rose more than 4 percent. 
                                
 BHP Billiton <BLT.L>, Anglo American <AAL.L> and Xstrata <XA.L> rose between
2 and 4.5 percent.
                                
 BMW <BMWG.DE>, the world's largest premium automaker, rose 2.6 percent after
posting smaller-than-expected quarterly losses and Ford Motor <F.N> said it has
invested $550 million to build small cars and other electric vehicles.
                                
 Dutch supermarket group Ahold <AHLN.AS> rose 6.4 percent after it reported
first-quarter sales of 8.65 billion euros ($11.6 billion) at the top end of
forecasts, as a broad restructuring helped it weather a weaker spending
environment. [ID:nL5206580]
                                
Total <TOTF.PA>, France's biggest listed company, rose 1.5 percent after
reporting a smaller-than-expected drop in first-quarter net profit on Wednesday
after crude prices halved and oil and gas production fell [ID:nL6463401].
                                
BP <BP.L> was among the other energy companies to gain, closing 1.5 percent
higher, as crude prices <CLc1> rose more than 4 percent and topped $56 a barrel.
                                
(Additional reporting by Atul Prakash; Editing by Rupert Winchester)