* FTSEurofirst 300 rises 0.8 percent
* ArcelorMittal's forecast-beating results boost steelmakers
* Siemens jumps after stronger-than-expected results
By Sitaraman Shankar
LONDON, July 30 (Reuters) - European shares rose early on
Wednesday as investors cheered strong results from industrial
firms and a subdued oil price took the edge off inflation
worries, though product setbacks punctured drugmakers.
At 0820 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.8 percent at 1,171.46 points, adding to
a 0.3-percent gain in the previous session.
Steelmaker ArcelorMittal <ISPA.AS> soared 7.8 percent,
lifting the steel sector after its results came in far above
expectations. German peer ThyssenKrupp <TKAG.DE> gained 5
percent and Sweden's SSAB <SSABb.ST> rose 4 percent.
German engineering group Siemens <SIEGn.DE> jumped 6 percent
after posting a stronger than expected rise in new orders and
revenues and confirming its fiscal year 2008/2009 outlook.
Building material maker Saint Gobain <SGOB.PA> rose 4
percent on positive brokerage comment.
"So far in the earnings season we've had balanced positive
and negative surprises, with most of the negatives from the
financial sector and the positives from industrials, which is
not surprising if you look at the macro picture," said Thierry
Lacraz, strategist at Swiss bank Pictet.
He said he liked industrials given valuations and relative
profitability.
"We're relatively comfortable with the industrial sector --
they've suffered as much as the rest."
Financial stocks have been the worst hit by a crisis in
credit markets that brought a four-year bull run to a screeching
halt last year.
British bank Lloyds TSB <LLOY.L> fell nearly 4 percent after
first-half profit dropped 70 percent and it took a hit from its
exposure to risky assets and adverse volatility in its insurance
arm.
But British insurers Admiral <ADML.L>, Aviva <AV.L> and Old
Mutual <OML.L> bucked the trend, rising 4-9 percent after
first-half profits at Aviva and Admiral rose.
Britain's FTSE <> was up 1.1 percent, Germany's DAX
<> up 0.8 percent and France's CAC <> up 1 percent.
OIL RELIEF, DRUG PAIN
Oil <CLc1> traded slightly higher at around $122.45 a barrel
after its steepest slide in a year and a half.
It has now fallen around 17 percent since hitting a record
high of $147.27 on July 11, pressured by signs that high prices
and an economic slowdown are curbing demand, especially in the
United States.
"The oil price at $120 is relatively positive, but I don't
see it going to $100 before something significant comes out of
the Iran situation," said Pictet's Lacraz.
Two drugmakers were prominent losers, with Ireland's Elan
<ELN.I> sliding 27 percent after detailed clinical trial results
for a new Alzheimer drug proved mixed, and Belgium's UCB
<UCB.BR> tumbling 12 percent after U.S. regulators gave it a
"non-approvable" letter for a pain drug.
Bigger French rival Sanofi-Aventis <SASY.PA> fell 2 percent
after a German court backed immediate marketing approval for
generic versions of its blockbuster blood thinner Plavix.
Luxury products group LVMH <LVMH.PA> topped French gainers
with a 3.9-percent rise after first-half results beat forecasts,
while aerospace and defence group EADS <EAD.PA> led
French-listed losers, falling 2 percent after second-quarter
earnings were weaker than expected.
(Editing by Paul Bolding)
