* FTSEurofirst 300 up 0.8 pct, gains 2.7 pct on the week
* Investors gear up for robust U.S. jobs data
* BP up 3.2 pct as progress made in stopping oil spill
* VDAX-NEW volatility index reaches 3-week low
* For up-to-the-minute market news, click on []
By Blaise Robinson
PARIS, June 4 (Reuters) - European stocks climbed in early
trade on Friday, extending a week-long recovery rally, as
investors eagerly awaited U.S. monthly jobs data that could
soothe recent jitters over the pace of the global recovery.
Energy stocks featured among the top gainers, led by a 3.2
percent gain by BP <.BPL>. The oil major said it has made
progress in its latest bid to capture some of the oil spewing
from its ruptured deep-sea well in the Gulf of Mexico.
At 0830 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.8 percent at 1,025.45 points.
"If the payrolls figure is good, it'll support stocks on
both sides of the Atlantic," said Christian Jimenez, fund
manager and president of Diamant Bleu Gestion in Paris.
"But this could be short-lived in Europe, where stimulus
plans have not been enough to kick-start growth, and governments
have ran out of ammunition."
The closely watched non-farm payrolls data, due at 1230 GMT,
is expected to show an increase of 513,000 jobs last month,
which would mark the biggest monthly gain since September 1983.
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Full preview on U.S. jobs data: []
Graphic on change in jobs data: http://r.reuters.com/dyr28k
Full coverage on oil spill: http://link.reuters.com/hed87k
Graphic on BP's latest efforts: http://link.reuters.com/wyf57k
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The FTSEurofirst 300 <> index of top European shares
is on track to record a gain of 2.7 percent on the week,
reversing some of the sharp losses suffered since mid-April when
fears that Greece's debt problems could push the country into
bankruptcy, spread to other euro zone countries such as Spain
and Portugal, and derail the global economic recovery started to
intensify.
RISK APPETITE IMPROVES
Risk appetite continued to recover on Friday, with the
VDAX-NEW volatility index <.V1XI> -- Europe's main gauge of
investor risk appetite or aversion -- hitting a three-week low,
down 3.7 percent on the session.
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.
Energy shares led the broad rally, with Royal Dutch Shell
<RDSa.L> up 0.9 percent, BG Group <BG.L> up 1.7 percent, Total
<TOTF.PA> up 1.5 percent and Repsol <REP.MC> up 0.8 percent.
Tech shares also gained ground, buoyed by a strong rally in
the sector on Wall Street. Alcatel-Lucent <ALUA.PA> was up 3.9
percent, STMicroelectronics <STM.PA> up 3 percent, and Infineon
<IFXGn.DE> up 2.5 percent.
Banking shares -- Europe's worst performers so far this year
-- gained ground, with Credit Suisse <CSGN.VX> up 1.5 percent
and Commerzbank <CBKG.DE> up 0.6 percent.
Valeo <VLOF.PA> surged 7 percent, adding to Thursday's 7.5
percent jump on M&A hopes surrounding the French car parts
maker. A source close to the company said Valeo has hired Bank
of America Merrill Lynch to advise on its strategic options that
may include a sale.
Around Europe, UK's FTSE 100 index <> was up 0.8
percent, Germany's DAX index <> up 0.8 percent, and
France's CAC 40 <> up 0.8 percent.
So far this year, the FTSE is down 2.9 percent, the DAX up
2.5 percent and the CAC down 8.9 percent. The STOXX Europe 600
Banks index <.SX7P> is down 12 percent year-to-date, while the
STOXX Europe 600 Technology index <.SX8P> is up 11 percent over
the same period.
(Editing by Michael Shields)
