* FTSEurofirst 300 rises 0.8 percent
* Miners lead advance as commodites rebound
* Swiss Life falls 7 percent on MLP, AWD deal
By Patrizia Kokot
LONDON, Aug 14 (Reuters) - European shares rose nearly 1
percent early on Thursday, powered by commodity groups that
tracked metal and oil prices higher.
By 0823 GMT, the FTSEurofirst 300 index <> of top
European shares rose 0.9 percent to 1,189.82 points, recovering
partly from a 2.4 percent decline on Wednesday.
Economic data remained in the spotlight with investors
mulling over GDP data from Germany and France, eurozone
inflation data and ahead of U.S.jobless claims and inflation
figures at 1230 GMT.
Germany's Statistics Office said the German economy
contracted by 0.5 percent in the second quarter - less than the
0.8 percent contraction seen by 40 economists polled by Reuters.
In France however, preliminary GDP in the second quarter
contracted by 0.3 percent, while economists had anticipated
growth of 0.2 percent.
Euro zone inflation data for July was revised down to 4.0
percent year-on-year and fell 0.2 percent month-on-month.
"We could see a somewhat volatile session until the release
of jobless claims and CPI data later," said asset manager Stefan
de Schutter at Alpha Trading in Frankfurt. "That will likely set
the direction for the rest of the day."
Commodities and oil heavyweights rallied unperturbed as
crude held above $116 a barrel and commodity prices rebounded.
BP <BP.L>, Total <TOTF.PA> and Shell <RDSa.L> gained between
1.5 and 2.2 percent and miners Rio Tinto <RIO.L>, Xstrata
<XTA.L> and BHP Billiton <BLT.L> rose between 4.2 and 4.5
percent.
Among the day's casualties, Swiss Life <SLHN.VX> plunged 6
percent as investors reacted to news that the Swiss insurer has
taken a 26.75 percent stake in German financial adviser MLP
<MLPG.DE> and is buying most of the remaining shares in its
rival AWD <AWDG.DE>. AWD soared 32 percent on the prospect of a
squeeze out of minority shareholders, but MLP lost 6 percent.
"There are two factors. Many had speculated on a hostile bid
(for MLP) and that speculative premium is now disappearing from
the price," a Frankfurt-based trader said, also noting that AWD
chief executive Carsten Maschmeyer was cooperating with Swiss
Life with regards to his stakes in both AWD and MLP.
"Secondly, we now know that he (AWD chief executive Carsten
Maschmeyer) bought shares on the market so that had also boosted
the stock so far," he added.
THYSSEN, SALZGITTER RAISE OUTLOOKS
Steel stocks gained ground on the back of a bullish earnings
report from ThyssenKrupp <TKAG.DE> which raised its full-year
target for pretax profit and beat analyst expectations with its
third-quarter earnings.
The stock added 2.4 percent, with smaller peer Salzgitter
<SZGG.DE> adding 1.6 percent after it too raised its outlook for
the full-year.
RWE <RWEG.DE> confirmed investor expectations with its
first-half earnings report but gave up initial gains to trade
0.6 percent lower.
"Overall, apparently, good news and encouraging," said
analysts at Landsbanki Kepler, highlighting that RWE is raising
its cost-cutting target and announced it would be upgrading its
mid-term outlook in February 2009.
Analysts also pointed to the very low valuation of it and
its peers. RWE edged up 0.8 percent, while E.ON <EONGn.DE> was
up 1.7 percent.
Among smaller companies, French IT services group Steria
<TERI.PA> soared 8.8 percent after it unveiled a 35.6 percent
rise in first-half sales and said it expects to exceed its
margin target.
Telecommunications services group Versatel <VTWGn.DE>
rallied 9 percent after it raised its guidance for the
full-year.
L'Oreal <OREP.PA> fell 3 percent after Morgan Stanley
downgraded the stock to "underweight" from "equal-weight". The
brokerage said it believed it was "unlikely that the company
will meet its double-digit profit growth target this year, which
would be a first in some 20 years".
Brewer Inbev <INTB.BR> fell 1.8 percent as it failed to
impress with its second-quarter earnings report, although it
reassured investors that the second-half of the year would see
improvements.
Peer Heineken <HEIn.AS> was down 1.5 percent.
(Editing by Victoria Bryan)
