* FTSEurofirst 300 rises 0.5 percent
* Morrison leads retailers up
* Financials, miners gain
* For up-to-the-minute market news, click on []
By Brian Gorman
LONDON, July 21 (Reuters) - European shares advanced in
early trade on Tuesday, rising for a seventh straight day, with
supermarket group Morrison <MRW.L> leading retailers higher on
an upbeat trading statement.
At 0835 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.5 percent at 885.67 points.
The index's seventh day of gains puts it on course for its
longest winning streak since August 2007, and it is up more than
37 percent from its lifetime low of March 9, as investors have
become more confident on the prospects of recovery.
British supermarket group Morrison soared 8.5 percent, and
led retailers higher, after saying full-year results would beat
expectations. []
Tesco <TSCO.L> rose 2 percent and Sainsbury <SBRY.L> was up
2.4 percent.
"It's looking positive. Corporate earnings have shown that
top lines are not so good, but the bottom line is better, as
they have cut costs," said Justin Urquhart-Stewart, investment
director at Seven Investment Management, in London.
"But you can only do that so far. In the broader picture,
you wonder where the growth is coming from."
World number two truck maker Volvo <VOLVb.ST> rose 3.8
percent despite posting a deeper than expected second-quarter
operating loss and stood by its forecast of sharp declines in
its main markets this year. []
Banks to rise included Deutsche Bank <DBKGn.DE>, HSBC
<HSBA.L> and Societe Generale <SOGN.PA>, up between 0.4 and 0.6
percent.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC-40 <> were up between 0.5 and 0.6
percent.
INSURERS GAIN
Insurers continued their recent recovery, with France's AXA
<AXAF.PA> up 1.8 percent and Britain's Aviva <AV.L> and
Prudential <PRU.L> up 1.6 and 1.8 percent respectively.
Miners were mostly higher, though copper prices slipped back
from nine-month highs. Anglo American <AAL.L>, Antofagasta
<ANTO.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L> were up between
1.3 and 2.2 percent.
Japan's Nikkei 225 <> rose 2.7 percent, its highest
close in two weeks.
U.S. stocks jumped on Monday, driving the S&P 500 <.SPX> to
an eight-month closing high, after CIT <CIT.N> was thrown a
lifeline to avoid bankruptcy, and investors bet corporate
America would log another strong set of earnings this week.
Federal Reserve Chairman Ben Bernanke reassured that loose
monetary policy with interest rates near zero would be around
for a while longer.
Bernanke said the Fed's accommodative policy would be
warranted for an extended period even while laying out a roadmap
for how the Fed could mop up the massive reserves injected into
the financial system.
Later in the session, investors' attention will turn to
corporate earnings in the United States, including those from
Apple <APPL.O>, Du Pont <<DD.N> and State Street <STT.N>.
(Editing by Mike Nesbit)
