European shares edge higher; banks recover

                                
 * FTSEurofirst 300 index up 0.1
                                
 * Banks recover from early falls
                                
 * Oils weigh; Royal Dutch Shell down
                                
 * U.S. GDP data awaited
                                
 By Joanne Frearson
                                
 LONDON, Oct 29 (Reuters) - European shares edged higher on
Thursday morning, with a recovery from banks outweighing falls
in energy stocks after results from oil major Shell <RDSa.L>
clouded the outlook for the sector.
                                
 By 0927 GMT, the pan-European FTSEurofirst 300 <.FTEU3>
index of top shares was up 0.1 percent at 981.48 points after
falling to a low of 974.50, its lowest level in three weeks.
                                
 The benchmark index, which has gained 52 percent since
reaching a record low in early March is still down around 40
percent since its mid-2007 peak.
                                
 "European markets have been hovering either side of the
starting point. Everything is pretty much on hold in front of
the U.S. third-quarter GDP data," said Jim Wood-Smith, head of
research at Williams de Broe.
                                
 U.S. third quarter gross domestic product figures are out at
1230 GMT and will be closely watched by investors for insight
into the state of the world's biggest economy.
                                
 "It is not healthy that all global asset classes appear to
be hanging on for one apparently key data item from the U.S. It
is indicative of a market that is beginning to run out of
ideas," Wood-Smith said.
                                
 Banks reversed earlier losses and added the most points to
the index. KBC <KBC.BR> jumped 10.8 percent after sharp falls in
the previous session.
                                
 HSBC <HSBA.L>, BNP Paribas <BNPP.PA>, Standard Chartered
<STAN.L> and Societe Generale <SOGN.PA> were 0.5 to 2.4 percent
higher.
                                
 
                                
 MINERS REGAIN GROUND
                                
 Miners rallied as copper <MCU3=LX> prices edged 0.2 percent
higher. Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP
Billiton <BLT.L> and Rio Tinto <RIO.L> were up 0.5 to 1.5
percent.
                                
 Henkel <HNKG_p.DE>, the maker of Schwarzkopf hair products
and Pattex glues, gained 4.7 percent after it surprised markets
late on Wednesday in reporting preliminary quarterly results
that it said were ahead of analysts' estimates. [ID:nLS82477]
                                
  On the downside, energy stocks featured among the biggest
losers as oil <CLc1> fell towards $77 a barrel.
                                
 Royal Dutch Shell <RDSa.L> slipped 2.7 percent after it said
third-quarter net profit fell 73 percent and Chief Executive
Peter Voser warned of a slow recovery. [ID:nLS686511]
                                
 Italian oil and gas group Eni <ENI.MI> was down 3.3 percent
after it cut its full-year output forecast and said
third-quarter adjusted net profit fell 60.5 percent on lower oil
prices and refining margins.  [ID:nLT387675]
                                
 BG Group <BG.L>, Premier Oil <PMO.L> and Total <TOTF.PA>
were down 1.2 to 1.5 percent.
                                
 Industrial engineering stocks weighed. Swiss engineering
group ABB AG <ABBN.VX> fell 4.5 percent after it said it is
still struggling to predict when its customers will start
spending again after third-quarter orders slumped 21 percent.
[ID:nLT488813]
                                
 Across Europe, the FTSE 100 <.FTSE> index was down 0.05
percent, Germany's DAX <.GDAXI> was flat and France's CAC 40
<.FCHI> was up 0.03 percent.
 (Editing by David Holmes)