REFILE-Europe shares rise for 6th week in 7; Nokia gains

                                
 (Refiles to remove superfluous "has" in second paragraph)
                                
 * FTSEurofirst 300 closes 1 pct higher
                                
 * Gains for sixth week in seven
                                
 * Nokia leads techs higher; Dell, Intel also boost sector
                                
 
                                
 By Brian Gorman
                                
 LONDON, Aug 28 (Reuters) - European shares touched a
10-month high on Friday on optimism for a global economic
recovery and with Nokia <NOK1V.HE> and results from U.S.
bellwethers boosting the technology sector.
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
rose 1 percent to 978.34 points. Over the week, the index
climbed 1.2 percent, its sixth weekly gain in the last seven
weeks.
                                
 The European benchmark index is up more than 51 percent from
its lifetime low of March 9, as investors have become more
confident on the prospects of economic recovery.
                                
 "Things look good for the time being, but the higher we go
the more we could be setting ourselves up for a disappointment,"
said Andy Lynch, a fund manager at Schroders.
                                
 "The world economy is doing well, French and German GDP are
positive, but that's not surprising given the amount of stimulus
being pumped into the market. I have a concern about what
happens when the sugar rush is withdrawn, though that may be a
problem for 2010, rather than now."
                                
 Nokia <NOK1V.HE> rose 3.1 percent, taking its gain in the
last three sessions to 9.9 percent, with traders citing positive
momentum following the announcement of its first Linux phone to
compete with Apple's <AAPL.O> iPhone.
                                
 STMicroelectronics <STM.PA> rose 12.4 percent after a
bullish note on the chipmaker from Banc of America-Merrill
Lynch, which raised its price target for the stock by 17 percent
to 7 euros, and retained its "buy" rating.
                                
 The sector was further boosted by upbeat statements from
U.S. bellwethers. Intel <INTC.O> raised its third-quarter
outlook and results at Dell <DELL.O> were ahead of forecasts.
[ID:nN28172958] [ID:nN27317400]
                                
 Macroeconomic news was also mostly positive. U.S. consumer
spending rose as expected in July, lifted by the government's
"cash-for-clunkers" programme that fuelled demand for autos. The
Commerce Department said spending rose 0.2 percent after rising
by a revised 0.6 percent in June, previously reported as a 0.4
percent gain.  [ID:nN28359458]
                                
 The European benchmark had risen to a 10-month high of
986.59 before gains were tempered by Reuters/University of
Michigan surveys showing U.S. consumer confidence falling to its
lowest level in four months in August on worries over high
unemployment and dismal personal finances. [ID:nN28361747]
                                
 
                                
 L'OREAL RISES 
                                
 Among other individual movers, L'Oreal <OREP.PA> advanced
7.4 percent to a 10-month high after the French beauty products
giant posted better-than-expected first-half profit.
[ID:nLS638409]
                                
 French conglomerate Bouygues <BOUY.PA> surged 9.1 percent
after raising its full-year sales target and posting
better-than-expected first-half results.
                                
 Commerzbank <CBKG.DE> jumped 7.2 percent on talk Germany
might be seeking to reduce its stake in the country's
second-largest bank. A spokesman for the finance ministry denied
the speculation. [ID:nWEA8465] [ID:nBAT003118]
                                
Intesa Sanpaolo SpA <ISP.MI>, Italy's biggest retail bank,
rose 2.4 percent as second-quarter profit beat analysts'
forecast and it confirmed its outlook for the full year.
[ID:nLS144682]
                                
 Other banks to rise in the heavyweight sector included
Barclays <BARC.L>, HSBC <HSBA.L>, Lloyds <LLOY.L>, Societe
Generale <SOGN.PA> and UBS <UBSN.VX>, up between 1.3 and 6.3
percent. 
                                
 Miners rose as copper touched 11-month highs. BHP Billiton
<BLT.L>, Anglo American <AAL.L>, Rio Tinto <RIO.L> and Xstrata
<XTA.L> rose between 1.7 and 4.4 percent.
                                
 A slew of macroeconomic data also signalled improving
conditions in Europe. Britain's economy shrank a
smaller-than-expected 0.7 percent in the second quarter. Euro
zone economic sentiment, too, improved more than expected in
August. [ID:nLS596076]
                                
 Britain's FTSE 100 <.FTSE> index closed 0.8 percent higher.
It has gained 6.5 percent in August. The London market will be
closed on Monday for a holiday. 
                                
 Germany's DAX <.GDAXI> and France's CAC 40 <.FCHI> rose 0.9
and 1.2 percent, respectively.
                                
 "There is only one clear trend in the market and that's on
the upside. People are coming back with a lot of inflows in
favour of equities and outflows are coming from the money
market," said Romain Boscher, head of equity management at
Groupama Asset Management, in Paris.
 (Additional reporting by Christoph Steitz; editing by Karen
Foster)