* FTSEurofirst 300 rises 0.4 percent
* Banks rise; Irish banks soar
* U.S. labour market report awaited
By Brian Gorman
LONDON, March 5 (Reuters) - European shares were higher in
early trade on Friday, following gains in Asia and the United
States overnight, and ahead of a key U.S. labour market report.
At 0920 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.4 percent at 1,040.83 points, on course
for a rise of more than 3 percent in the week, and for a sixth
straight day of gains.
The European benchmark is up more than 61 percent from its
lifetime low on March 9, 2009.
The heavyweight banking sector added most points to the
index on Friday.
Credit Suisse <CSGN.VX>, HSBC <HSBA.L>, Royal Bank of
Scotland <RBS.L>, Societe Generale <SOGN.PA>, Standard Chartered
<STAN.L> and UniCredit <CRDI.MI> rose between 1 and 4.2 percent.
Allied Irish Banks <ALBK.I> surged 12.5 percent, taking its
gain for the week to more than 40 percent, as investors took the
view that the worst is over, following the company reporting a
full-year loss on Tuesday.
Bank of Ireland <BKIR.I> rose 11.4 percent.
The main economic focus of the day will be at 1330 GMT, when
U.S. labour data is released. The figures are expected to show
that 50,000 jobs were lost in February.
"The trend in the U.S. labour market is already clear: it's
stabilising, but not creating jobs," said Bernard McAlinden,
investment strategist at NCB Stockbrokers.
"But the most important piece of data for the market in
recent days has been the services PMI, which showed that the
double dip is not going to happen."
Miners gained as the price of copper <MCU=LX> and other
metals rose, supported by hopes that demand from China .
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Lonmin <LMI.L> and Rio Tinto <RIO.L> rose between 1 and
1.7 percent.
Across Europe, Britain's FTSE 100 <>, France's CAC40
<> and Germany's DAX <> were up between 0.3 and 0.4
percent.
VEOLIA FALLS
French utility Veolia <VIE.PA> fell 2.4 percent after its
earnings growth goals disappointed analysts who had expected
more ambitious targets. []
Drugs giant GlaxoSmithKline <GSK.L> fell 1 percent after UBS
cut its price target while maintaining a "buy" rating.
British publishing and events group United Business Media
<UBM.L> soared 9 percent after it beat expectations with a 3
percent drop in 2009 earnings per share and said its outlook was
stable despite a fall in bookings for its top trade shows.
[]
U.S. stocks rose on Thursday as better-than-expected monthly
sales from retailers and a drop in the number of Americans
filing claims for jobless benefits pointed to stabilisation in
the economy.
Japan's benchmark Nikkei 225 <> closed 2.2 percent
higher on Friday.
Greece's deficit continues to worry some investors. German
Chancellor Angela Merkel was due to meet Greek Prime Minister
George Papandreou later on Friday.
"It became the market's main neurosis," said McAlinden.
"It's not resolved, but it's not going to be of cosmic
significance. It's not going to break the euro."
(Editing by Hans Peters)
