* FTSEurofirst 300 up 1.2 pct, jumps after U.S. data
* Financial stocks among top gainers, KBC jumps 15.6 pct
* Energy shares under pressure; Shell, Eni results weigh
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, Oct 29 (Reuters) - European shares climbed on
Thursday, led by financials and miners, after data showed the
U.S. economy grew in the third quarter for the first time in a
year, unofficially ending the worst recession in 70 years.
In its first estimate of third-quarter gross domestic
product, the Commerce Department said the economy grew at a 3.5
percent annual rate, the fastest pace since the third quarter of
2007. It contracted 0.7 percent in the April-June period.
The market also got support from figures showing the number
of U.S. workers filing new claims for jobless benefits dipped by
1,000 last week, while the number collecting long-term aid fell
to the lowest reading in seven months as the job market
steadied. []
At 1324 GMT, the FTSEurofirst 300 <> index of top
European shares was up 1.2 percent at 991.88 points after
hitting a three-week low of 974.50 earlier in the session.
The index, which slumped 45 percent last year, is up 19
percent in 2009 and has surged 52 percent since hitting a record
low in early March.
"The U.S. authorities used every weapon in their arsenal to
make sure that the recession didn't turn into a depression,"
said Henk Potts, equity strategist at Barclays Wealth.
"The economy quickly rebounded with growth into the third
quarter. It's positive for the world's largest economy and
obviously good news in terms of macro expectations and equity
prices," he added.
Financial stocks were among the top gainers, with Standard
Chartered <STAN.L>, HSBC <HSBA.L>, Barclays <BARC.L>, Lloyds
<LLOY.L>, Royal Bank of Scotland <RBS.L>, BNP Paribas <BNPP.PA>
and Societe Generale <SOGN.PA> rising between 0.8 and 10.4
percent.
Belgium's KBC <KBC.BR> surged 15.6 percent after tumbling
for three straight sessions following ING's <ING.AS> announced
capital increase and the spin-off of its insurance business.
The EU-imposed break-up and retrenchment of Dutch ING
sparked fears that others could face tougher-than-expected
sanctions in return for state aid, sending shares sharply lower
earlier this week. ING shares rose 7.4 percent.
Miners derived strength from higher metals prices. BHP
Billiton <BLT.L>, Anglo American <AAL.L>, Antofagasta <ANTO.L>,
Rio Tinto <RIO.L>, Xstrata <XTA.L> and Eurasian Natural
Resources <ENRC.L> rose 2.3-5.4 percent.
But energy shares were under pressure after oil majors Royal
Dutch Shell <RDSa.L> and Eni <ENI.MI> warned of a slow recovery,
highlighting weak energy demand and operational challenges, as
their profits slumped.
Shell, Europe's largest oil company by market value, said it
was cutting 5,000 jobs to tackle the tough economic environment.
[]
Its shares were down 3.5 percent.
Eni fell 1.9 percent after it said European demand for gas
and fuels would continue to shrink, and said it was cutting its
production target for the year. BG Group <BG.L> was down 1.3
percent.
Across Europe, Britain's FTSE 100 index <>, Germany's
DAX <> and France's CAC 40 <> rose 0.6-1.3 percent.
(Editing by Will Waterman)
