* FTSEurofirst 300 up 0.3 percent, up for 5th straight day
* Euro STOXX 50 breaks above key trend line
* Ericsson, Renault surge on strong earnings
* Investors trim exposure to risky assets ahead of Fed
* For up-to-the-minute market news, click on []
By Blaise Robinson
PARIS, April 27 (Reuters) - European stocks inched higher in
early trade on Wednesday, gaining ground for the fifth straight
session as investors focused on strong results from bellwethers
such as Ericsson <ERICb.ST> and Renault <RENA.PA>.
Gains, however, were limited as the market awaited clues
from the U.S. Federal Reserve on its exit strategy, with
investors trimming their exposure to risky assets such as mining
stocks. BNP Billiton <BLT.L> was down 1.3 percent and Xstrata
<XTA.L> down 0.7 percent.
At 0923 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.3 percent at 1,149.38.
The euro zone's blue chip Euro STOXX 50 <> index
rose 0.5 percent to 2,969.18, convincingly breaking above a key
resistance level at around 2,961.4, which represents a downward
trendline formed by peaks hit in mid-February and early April, a
bullish signal.
Despite the recent rally, the benchmark index is still down
3.5 percent from its peak of mid-February.
"We're seeing a flight to quality this week, with falling
bond yields in the United States, Germany and France. Investors
clearly want better returns and a protection against inflation,
but they still don't really trust equities in general," said
Marc Gilson, head of Paris-based fund management firm Fival.
Shares in telecom gear maker Ericsson <ERICb.ST> surged 9.5
percent following stellar quarterly results, while Renault
<RENA.PA> rose 3.8 percent after the French carmaker posted
better-than-expected sales.
UK lender Barclays <BARC.L> dropped 4.8 percent after the
bank's first-quarter profits fall on the back of lower income at
its key investment banking unit.
Around Europe, UK's FTSE 100 index <> was down 0.1
percent, Germany's DAX index <> up 0.6 percent, and
France's CAC 40 <> up 0.4 percent.
The Fed is expected to stick to its plan to complete its
$600 billion bond-buying program in June, but questions about
the exit strategy will likely arise when Fed Chairman Ben
Bernanke holds a news conference during which he may give hints
on the central bank's thinking on the matter. []
"The end of QE2 is already priced in, so unless we get a
bombshell, the impact on the market should be muted. If the Fed
announces an extension of the programme, the market reaction
might be negative because it will be seen as a sign that the
economy isn't back on track," said Jacques Henry, analyst at
Louis Capital Markets in Paris.
(Reporting by Blaise Robinson; Editing by Hans Peters)
