European shares edge higher as China gains

                                
 * FTSEurofirst 300 rises 0.1 percent
                                
 * Miners gain on higher metals prices
                                
 * Traders await ECB rate decision
                                
 * For the latest stocks news, click on [STXNEWS/EU]
                                
 
                                
 By Brian Gorman
                                
 LONDON, Sept 2 (Reuters) - European shares edged higher in
early trade on Thursday after China's stock market bounced and
ahead of the European Central Bank's decision on interest rates.
                                
 At 0834 GMT, the FTSEurofirst 300 <.FTEU3> index of top
European shares was up 0.1 percent at 951.27 points, having
moved in and out of positive territory. This came after three
days of losses.
 The benchmark index is up more than 47 percent from the
record low it hit in March, and the banking sector index <.SX7P>
is up more than 154 percent in that time.
                                
 Miners rose as copper prices edged up. Anglo American
<AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>, Rio Tinto
<RIO.L> and Xstrata <XTA.L> rose between 1.1 and 2.6 percent.
                                
 "The market is wondering whether it has run ahead of
itself," said Bernard McAlinden, investment strategist at NCB
Stockbrokers, in Dublin.
                                
 Banks, heavy fallers in recent days, were mostly higher.
                                
 BNP Paribas <BNPP.PA>, Banco Santander <SAN.MC> and Deutsche
Bank <DBKGn.DE> were up between 1 and 1.4 percent.
                                
 Across Europe, Britain's FTSE 100 <.FTSE> was flat,
Germany's DAX <.GDAXI> and France's CAC-40 <.FCHI> were both up
0.2 percent.
                                
 China's key stock index, the Shanghai Composite Index
<.SSEC>, rose 4.8 percent on Thursday, after a top regulator
assured investors that the country's market was healthy,
sparking hopes of government policy support and technically
driven buying after the market's recent slump. [ID:nBJD002993]
                                
 Futures for the Dow Jones <DJc1>, S&P 500 <SPc1> and Nasdaq
<NDc1> were up between 0.3 and 0.4 percent. 
                                
 
                                
 FORTIS GAINS
                                
 Among individual stocks, Fortis <FOR.BR> rose 4.5 percent
after JPMorgan raised its price target for the Belgian insurance
group to 4 euros, from 3.3, retaining its "overweight" rating.
                                
 BASF <BASF.DE> fell 2.5 percent, after Nomura downgraded its
stance on the chemicals giant to "reduce" from "neutral.
                                
 French spirits group Pernod Ricard <PERP.PA> fell 1.9
percent after it predicted a tough year as the drinks market
stagnates and said it would focus on disposals and generating
cash to reduce its debt pile.
                                
 The world's second-largest spirits group behind Diageo
<DGE.L> posted a 21 percent rise in recurring operating profit
for the year to June 30. [ID:nL3320454]
                                
 BP <BP.L> fell 1 percent following a gain of 4.3 percent on
Wednesday, when it announced a major oil find in the Gulf of
Mexico.
                                
 In macroeconomic news, the euro zone services economy jumped
back almost to recovery in August, with Germany powering back to
growth and France just an inch away too, a survey showed on
Thursday. [ID:nLAG003715]
                                
 The ECB is expected to announce at 1145 GMT that it is
keeping its key interest rate at 1 percent.
                                
 Investors will also watch for the services sector PMI and
weekly jobless numbers in the United States, due later. 
                                
 McAlinden said he was "not expecting much" to come from the
ECB but the U.S. services PMI might move the market.
 (Editing by Hans Peters)