European shares hit two-week high; BP rebounds

                                
 * FTSEurofirst 300 index up 2.1 pct, tracking Wall St rally
                                
 * BP climbs back after sell-off on Gulf of Mexico disaster
                                
 * Euro zone PMI data pleases investors
                                
 * For up-to-the minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Joanne Frearson
                                
 LONDON, June 3 (Reuters) - European shares rose to a
two-week high on Thursday as investors' confidence in the global
economy improved after strong U.S. data, with banks and
beaten-down energy stocks rallying.
                                
 Investor sentiment was also lifted after the Markit Eurozone
Services Purchasing Managers' Index showed the services sector
was expanding in May and the Final Services Employment Index
showed its first jobs growth since June 2008. [ID:nSLA2HE66K]
                                
 Energy stocks snapped their four-day falling streak. BP
<BP.L>, recently battered by concerns over the Gulf of Mexico
disaster, rose 3.7 percent. The company said its robot
submarines had made halting progress in its latest bid to siphon
off the oil spill. The stock is still down 32 percent since the
spill started six weeks ago.
                                
 The sector was also supported as crude <CLc1> advanced to
near $74 a barrel on optimism after the U.S. data. BG Group
<BG.L>, Royal Dutch Shell <RDSa.L> and Total <TOTF.PA> gained 2
to 3.8 percent.
                                
 By 0845 GMT, the pan-European FTSEurofirst 300 <.FTEU3>
index of top shares was up 2.1 percent at 1,024.50 points, its
highest level in two weeks.
                                
 "Yesterday's news on U.S. pending home sales and auto sales
are signs confidence is improving in the economy," said David
Buik, partner at BGC Partners. "We are also expecting decent
U.S. non-farm payroll numbers tomorrow which is quite key."
                                
 President Barack Obama on Wednesday said he believed that
the upcoming May employment report would show strong growth in
U.S. payrolls. [ID:nN02175839]
                                
 Later in the session, investors will watch the U.S. May ADP
national employment survey, due at 1215 GMT, and the latest U.S.
weekly jobless claims, due at 1230 GMT, ahead of Friday's May
U.S. nonfarm payrolls data.
                                
 Banks stocks were also given a boost by the more positive
mood about the global economy. Banco Santander <SAN.MC>,
Barclays <BARC.L> and UniCredit <CRDI.MC> advanced 2.3 to 3
percent.
                                
 
                                
 CARMAKERS GAIN
                                
 Carmakers were in demand after U.S. auto sales rose 19
percent in May from the depressed levels of a year earlier.
Peugeot <PEUP.PA>, Fiat <FIA.MI> and Renault <RENA.PA> gained
3.6 to 4.7 percent.
                                
 Miners were also higher as metal prices were buoyed by the
good sentiment. Anglo American <AAL.L>, Eurasian Natural
Resources Corporation <ENRC.L> and Rio Tinto <RIO.L> gained 3.2
to 5.1 percent.
                                
  Johnson Matthey <JMAT.L>, the world's largest supplier of
catalytic converters, rose 2.3 percent. The company said it
expects to make good progress in the first half of 2010/11 after
posting a 5 percent dip in annual underlying pretax profit.
                                
 Across Europe, the FTSE 100 <.FTSE> index was up 2 percent,
Germany's DAX <.GDAXI> was 1.9 percent higher and France's CAC
40 <.FCHI> gained 2.6 percent.
                                
 Spain's IBEX <.IBEX> rose 2.1 percent, Portugal's PSI 20
<.PSI20> was 1.5 percent higher and Italy's benchmark <.FTMIB>
gained 3 percent.
 (Reporting by Joanne Frearson; Editing by Hans Peters)