UBS leads as European shares hit 2-wk closing high

                                
 * FTSEurofirst 300 closes 0.3 pct higher
                                
 * UBS rises on inflows for wealth management arm
                                
 * Parmalat jumps on Lactalis takeover bid
                                
     
                                
 By Brian Gorman
                                
 LONDON, April 26 (Reuters) - European shares rose for the
fourth straight session and hit a two-week closing high on
Tuesday, boosted by corporate results in both the United States
and Europe, including those of Swiss bank UBS <UBSN.VX>.
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
rose 0.3 percent to 1,145.96 points, the highest close since
April 11. Volumes were low, at 81 percent of the 90-day average,
as markets resumed following the Easter holiday. 
                                
 UBS rose 3.9 percent, with money pouring into its core
wealth management arm in the first quarter and its struggling
investment bank doing better than expected. [ID:nLDE73P01W]
                                
 Swiss banks Julius Baer <BAER.VX> and Credit Suisse
<CSGN.VX> rose 2.1 and 1.2 percent respectively. Credit Suisse
reports results on Wednesday. 
                                
 "Expectations for earnings season had been low, partly
because of margin pressure, but on the whole they've been better
though mainly in the U.S. rather than Europe, which has been
hitching a ride on the back of it," said Michael McNaught-Davis,
head of international equities at Scottish Widows, which has 145
billion pounds under management.
                                
 Wall Street hit its highest in nearly three years around the
time European bourses were closing. The Dow Jones <.DJI> and S&P
500 <.SPX> were both up 0.7 percent, helped by solid earnings
from the likes of Ford <F.N> and 3M <MMM.N>.
                                
 "If earnings season continues to surprise on the upside then
the market will be well supported," said fund manager James
Buckley, at Baring Asset Management, which has 30 billion pounds
under management.
                                
 "We like technology - we're seeing good numbers coming out
of it, on corporate spending."
                                
 Some heavyweight mining shares retreated along with metal
prices as investors trimmed their exposure to risky assets such
as resource-related stocks as the U.S. Federal Reserve kicked
off a two-day meeting on interest rates.
                                
 The Fed is expected to conclude with a signal that it is in
no hurry to scale back its massive support for the economic
recovery. [ID:nN26266827]
                                
 Anglo American <AAL.L> fell 1 percent.
                                
 McNaught-Davis said the expectations that "rate hikes are
being pushed back is partly a reflection that the economy is not
strengthening." He added that the "ideal scenario" for equities
would be for the economy to pick up more, and for rate hikes to
be gradual.
                                
 "People are cutting risk ahead of the Fed meeting. The
cautious stance is not only on the end of QE2 and the outlook
for rates but also on the fact that Bernanke will hold his
first-ever post-meeting press conference," said David Thebault,
head of quantitative sales trading, at Paris-based Global
Equities. "The fact that the Fed is changing the way it
communicates is keeping investors on edge."
                                
 The euro hit a 16-month high against the dollar on Tuesday,
with no respite in sight seen for the greenback if the U.S.
Federal Reserve keeps monetary policy accommodative. 
                                
 The weaker dollar, although not enough to help prevent
metals falling, helped keep oil prices <LCOc1> relatively
strong, at more than $123 a barrel.
                                
 BP <BP.L> rose 0.8 percent, ahead of results on Wednesday.
Royal Dutch Shell <RDSa.L> rose 1.2 percent. 
                                
     
                                
 PARMALAT GAINS
                                
 Among other stocks, Italian dairy group Parmalat <PLT.MI>
rose 10.7 percent after French rival Lactalis launched a $4.9
billion takeover bid for it. [ID:nLDE73P0C4]
                                
 Around Europe, UK's FTSE 100 index <.FTSE> rose 0.9 percent,
Germany's DAX index <.GDAXI> was up 0.8 percent, and France's
CAC 40 <.FCHI> gained 0.6 percent.
                                
 So far, nearly 60 percent of 31 STOXX Europe 600 <.STOXX>
companies that have reported first quarter earnings have met or
beaten analysts' forecasts, a figure that trails behind Wall
Street's strong showing so far in the earnings season, according
to data from Thomson Reuters StarMine.
                                
 Of the 156 S&P 500 <.SPX> companies that have reported
quarterly results, 81 percent have either beaten or met market
expectations, while 19 percent have missed forecasts.
 (Additional reporting by Blaise Robinson;  Editing by Jane
Merriman)