* FTSEurofirst 300 up 0.4 pct; hits 1-month closing high
* Financials race higher after soothing corporate results
* Drugmakers, energy shares advance; but Nokia slumps
By Atul Prakash
LONDON, July 16 (Reuters) - European shares hit a one-month
closing high on Thursday following a jump in JPMorgan's <JPM.N>
profits and after data showed the number of U.S. workers
claiming new jobless benefits fell last week.
The FTSEurofirst 300 <> index of top European shares
climbed 0.4 percent to 866.81 points, the highest close since
June 12 after four straight sessions of gains.
The benchmark, which slumped 45 percent in 2008, has gained
34 percent since hitting a record low in early March.
Financial stocks were among top gainers as investors flocked
to the shares after reassuring quarterly results from Goldman
Sachs <GS.N> on Tuesday and a 36 percent jump in JPMorgan's
second-quarter profit on Thursday. []
HSBC <HSBA.L>, Barclays <BARC.L>, Lloyds <LLOY.L>, BNP
Paribas <BNPP.PA>, Societe Generale <SOGN.PA>, Credit Agricole
<CAGR.PA> and Natixis <CNAT.PA> jumped 0.5-3.2 percent.
"The results have given support to the market and provided
investors a view that there is life after death," said Andrew
Bell, head of research at Rensburg Sheppards.
"For the markets to run up to where they were pre-Lehman,
you have got to see a significant return to positive growth and
a decent bounce in earnings. And that's going to need a
contribution from the cyclical companies and from the banks."
Among economic news was surprisingly strong growth of 7.9
percent in China in the second quarter, making it the
best-performing major economy and reinforcing hopes it may lead
the world out of its deepest recession in 80 years.
"Not only have the earnings surprised to the upside, but the
economic data has indicated the worst is over. As the markets
rally, investors are rushing to jump on board in the fear of
missing the next major move higher," said Angus Campbell, head
of sales at Capital Spreads.
Across Europe, UK's FTSE 100 index <>, Germany's DAX
<> and France's CAC 40 <> were up 0.4-0.9 percent.
PHARMA, OILS UP
Drugmakers were also in demand, with AstraZeneca <AZN.L>,
GlaxoSmithKline <GSK.L>, Novo Nordisk <NOVOb.CO>, Roche Holding
<ROG.VX>, Sanofi-Aventis <SASY.PA> and Shire <SHP.L> advancing
0.5-1.6 percent.
Swiss drugmaker Novartis AG <NOVN.VX> gained 3.1 percent
after it raised its full-year forecast for drug sales, betting
on income from cancer and heart medicines after second-quarter
net profit met expectations. []
Oils tracked crude prices <CLc1>, which rose 0.3 percent. BP
<BP.L>, Royal Dutch Shell <RDSb.L>, Repsol <REP.MC>, Total
<TOTF.PA> and StatoilHydro <STL.OL> added 0.3-1.1 percent.
French engineering group Alstom <ALSO.PA> confirmed its
full-year target but said second-quarter orders would remain low
as power generation projects face delays. Its shares were up 1.2
percent. []
But Nokia <NOK1V.HE> slumped 15 percent after the world's
top cellphone maker cut its profitability and market share
forecasts due to tough competition at the top end of the market.
[]
Investors await corporate earnings results from Citigroup
<C.N>, General Electric <GE.N> and Bank of America <BAC.N> on
Friday.
(Editing by Elaine Hardcastle)
