* FTSEurofirst 300 up 0.3 pct in seventh day of gains
* Upbeat U.S. retail sales boosts sentiment
* Focus on U.S. Federal Reserve's policy meeting
By Harpreet Bhal
LONDON, Dec 14 (Reuters) - European shares rose in thin
volume to gain a seventh straight session on Tuesday, as upbeat
U.S. retail sales figures reinforced confidence in the pace of
economic recovery.
Investors were reluctant to take on large positions ahead of
the outcome of a U.S. Federal Reserve meeting, as the market
awaited the central bank's assessment of its recent bond-buying
programme and signs of further easing measures. []
The FTSEurofirst 300 <> index of top European shares
closed up 0.3 percent at 1,132.46 points in the longest winning
run since June, though volume was low as the year-end holiday
season approached.
The index is up more than 8 percent this year following a 26
percent jump in 2009.
Sentiment was boosted by data showing a rise in U.S. retail
sales and producer prices in November, a further sign that the
economic recovery was gathering pace. []
"We have had two solid months of stronger-than-expected
retail sales from the U.S. and that is boosting near-term
sentiment," said Joshua Raymond, market strategist at City
Index.
Oil majors rose, led by gains in heavyweight BP <BP.L> which
jumped 3.2 percent as traders cited speculation that Royal Dutch
Shell <RDSa.L> was mulling a bid for the energy firm.
A portfolio sale of oil and gas assets in Pakistan was also
seen as supportive for BP shares. []
Royal Dutch Shell was up 1.1 percent, while Total <TOTF.PA>
added 0.8 percent.
Across Europe, Britain's FTSE 100 <> and France's CAC
40 <> rose 0.5 and 0.3 percent respectively, while
Germany's DAX <> closed flat.
FED EYED
The Fed is expected to release a statement at 1915 GMT,
against the backdrop of a dramatic rise in yields on U.S.
Treasury bonds in recent weeks.
The central bank is expected to stay in a holding pattern
and is unlikely to show signs of scaling back monetary stimulus,
after a recent second round of quantitative easing (QE2).
"My expectations are nothing big to be announced. They will
show support for the QE2, but I can't imagine that they will
extend, be more dovish or be more hawkish. This is the last
meeting of the year and they are just going to play safe," said
Graham Bishop, equity strategist at RBS.
The euro zone debt crisis remained in focus after credit
rating agency Standard & Poor's cut its outlook for Belgian debt
to negative on Tuesday, adding the country's AA+ rating could be
downgraded within six months.[]
Belgium's BEL 20 index <> closed flat.
European mining shares were on the back foot, with the STOXX
Europe 600 basic resources index <.SXPP> down 0.7 percent,
having added more than 11 percent in the past two weeks.
Utility EDP <EDP.LS> lost 2.7 percent after Portuguese state
holding company Parpublica said it would make fresh attempts to
sell part of the firm days after a first effort was called off
due to a lack of competitive bids. []
TUI AG <TUIGn.DE>, owner of Europe's largest tour operator
TUI Travel <TT.L>, rose 5.1 percent after saying it expected a
positive result for the current financial year. []
(Additional reporting by Atul Prakash; editing by David
Hulmes)
