* FTSEurofirst 300 index up 0.2 pct; hits one-week high
* Strong earnings boost chemical, technology shares
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, April 21 (Reuters) - European shares advanced for a
third straight session to hit a one-week high on Thursday, with
a raft of forecast-beating company results improving market
sentiment and boosting chemical and technology stocks.
Trading was choppy ahead of the Easter holiday, with some
investors taking profits from recent gains.
Analysts had a positive outlook for equities, but advised
caution as worries related to the euro zone debt crisis and
problems in the supply chain following an earthquake in Japan
loitered in the background.
At 0855 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.2 percent at 1,139.84 points after
touching 1,140.62, the highest since April 12.
"After a slow start, earnings have improved quite rapidly
and results from the companies such as Intel and Apple have
certainly boosted investor sentiment," said Keith Bowman, equity
analyst at Hargreaves Lansdown.
"There is some nervousness in the background, particularly
in relation to the situation in Japan and what that means for
the supply chain, but as of today the markets have concentrated
on good corporate results."
Chemical shares featured among the top gainers, with Dutch
company AkzoNobel <AKZO.AS> rising 4.4 percent after lifting its
first quarter core profit 10 percent and keeping its full-year
forecast. The European sector index <.SX4P> rose 1 percent.
"The company results that have come so far are quite
optimistic. The outlook for European stocks in the coming months
is slightly positive, but there are uncertainties regarding the
euro zone debt situation," said Ben Hauzenberger, fund manager
at Zurich-based Swisscanto Asset Management, which manages about
60 billion Swiss francs ($67.60 billion).
"Given the more optimistic results coming out from cyclical
companies, the interest is back there. The technology sector
looks quite promising."
Technology shares extended the previous session's sharp
gains, supported by forecast-beating results from U.S. firm
Apple <AAPL.O>. The European sector index <.SX8P> was up 0.7
percent, while ASML <ASML.AS> rose 1.9 percent.
FINANCIALS GAIN
Financial shares rose, with the STOXX Europe 600 banking
index <.SX7P> gaining 1 percent. Both Alpha Bank <ACBr.AT> and
EFG Eurobank <EFGr.AT> gained more than 4 percent, tracking the
wider market, after sharp declines in the previous session on
talks that Greece could restructure its debt.
Goldman Sachs expects a Greek debt restructuring would lead
to a hit of up to 41 billion euros in European bank capital, or
3 percent of their total Tier I capital, though Greek banks
would suffer the most.
UBS said it has seen some renewed interest in banks and
diversified financials in the past few weeks after recent rights
issues in the banking sector and the review of UK banks by the
country's Independent Commission on Banking.
According to client flows from UBS, miners have suffered the
highest outflows of any European sector over the past month,
with net selling at its highest in five years.
Greek bank shares <.FTATBNK> have fallen more than 16
percent so far this year after losing 53 percent last year. By
comparison, the European banks index <.SX7P> has risen 1.1
percent year-to-date.
On the downside, telecommunications shares lost ground after
Dutch company KPN <KPN.AS> cut its profit forecast for 2011 and
slashed jobs. KPN shares fell 6.4 percent, while the STOXX
Europe 600 Telecom index <.SXKP> was down 1.5 percent.
"The first quarter results will lead the markets in the
coming days and weeks, but keep an eye on the most important
economic figures for signs of economic weakness," said Koen De
Leus, strategist at KBC Securities, in Brussels.
(Additional reporting by Dominic Lau; Editing by David Cowell)
