* FTSEurofirst 300 index gains 0.6 pct
* AstraZeneca jumps on earnings, Brilinta
* Capgemini surges after raising targets
* For up-to-the minute market news, click on []
By Joanne Frearson
LONDON, July 29 (Reuters) - European shares rose on Thursday
on improving consumer risk appetite, boosted by strong company
earnings from drugmakers such as AstraZeneca <AZN.L> and tech
firms including Capgemini <CAPP.PA>.
By 0852 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was up 0.6 percent at 1,056.64 points, while
the Euro STOXX 50 <>, the euro zone's blue-chip index,
was up 0.7 percent to 2,784.31 points.
The STOXX 50 is currently facing major resistance at the
2,790 level - its May and June high - and is testing it for the
third consecutive session, having touched 2,789.88 earlier on
Thursday.
Drugmakers were in demand as AstraZeneca gained 4.5 percent
following strong second-quarter numbers and after winning an
endorsement from a U.S. advisory panel for its potential
blockbuster heart drug, Brilinta.
Peer Sanofi-Aventis <SASY.PA> also rose, up 0.7 percent
after it beat second-quarter earnings expectations.
"Positive corporate news has increased investors' risk
appetite," said Henk Potts, equity strategist at Barclays
Wealth. "The market is embracing decent corporate headline
numbers, but there is still a lot for it to digest."
Technology shares featured among the best performers, with
services group Capgemini <CAPP.PA> jumping 6.4 percent after the
group hiked its 2010 margin target and second-half sales target
as business spending on technology recovers.
Telecoms were also higher, with France Telecom <FTE.PA>
rising 4.4 percent after posting slightly higher than expected
second-quarter results and soothing investor concerns about its
dividend payout policy.
"It's a pleasant surprise on the dividend... whereas the
lack of visibility and the uncertainty on this point had
squeezed the share price up to now," a Paris-based trader said.
"This move can also be interpreted as a signal that shareholders
will now be better treated."
Telefonica <TEF.MC> gained 2.1 percent after it posted a
better than expected first-half profit. []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a graphic on European second-quarter earnings by sector,
please click on http://r.reuters.com/naw22n
For a graphic showing the European PMIs and other cyclical
indicators, please click on http://r.reuters.com/kuv45m
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
REED GAINS
On individual stocks, professional publishing and events
group Reed Elsevier <REL.L> gained 4.9 percent after underlying
first-half revenues beat expectations, and as advertising and
promotion markets appeared to be stabilising. []
German drugs-to-chemicals maker Merck KGaA <MRCG.DE> rose
4.4 percent after it beat quarterly earnings expectations and
significantly raised its 2010 outlook, on strong demand for its
liquid crystal (LC) chemicals for flat screens. []
On the downside, Vallourec <VLLP.PA> dropped 4.4 percent,
after the French seamless tube maker, supplier to the oil, gas,
electricity sectors, gave a cautious outlook.
Spanish motorway operator Abertis <ABE.MC> shed 2.2 percent
after reports that the consortium planning a full bid for the
company had split up and the bid scrapped, sparking valuation
concerns.
Shares in Norwegian oil and gas producer Statoil <STL.OL>
fell 3.2 percent after the company released weaker than expected
second-quarter earnings.
Across Europe, the FTSE 100 <> index was up 0.7
percent, Germany's DAX <> was 0.7 percent higher and
France's CAC 40 <> rose 0.5 percent.
The Thomson Reuters Peripheral Eurozone Countries Index
<.TRXFLDPIPU> rose 1.4 percent.
(Graphics by Scott Barber; editing by Simon Jessop)
