Europe stocks inch up, helped by US stimulus hopes

                                
 * FTSEurofirst 300 up 0.1 pct, gains 2.4 pct on the month
                                
 * Euro STOXX 50 ends flat, above key support level
                                
 * British Airlines, Iberia fall as results fail to impress
                                
 * For up-to-the-minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Blaise Robinson
                                
 PARIS, Oct 29 (Reuters) - European stocks ended slightly
higher on Friday, posting a second consecutive monthly gain, as
U.S. GDP data cemented expectations of monetary easing from the
Federal Reserve next week.
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
closed 0.1 percent higher at 1,086.61 points, up 2.4 percent for
the month.
                                
 The Euro STOXX 50 <.STOXX50E>, the euro zone's blue-chip
index, ended down 0.02 percent at 2,844.99 points, staying above
a key support level tested during the session, the 38.2 percent
Fibonacci retracement of the index's fall from a 2007 high to a
2009 low.
                                
 Data showed U.S. gross domestic product expanded at a 2
percent annual rate as expected in the third quarter, but not
enough to change perceptions the Fed would kick off a new
programme of quantitative easing. [ID:nN28207235]
                                
 "This figure clearly shows a slowdown in growth without
pointing towards a double dip. Overall, it doesn't change the
expectation of more monetary easing from the Fed," BNP Paribas
economist Jean-Marc Lucas said.
                                
 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 Graphic showing U.S GDP: http://r.reuters.com/ryx82q
                                
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 The Federal Open Market Committee meets next week, and
estimates for how long the Fed will print money and how much it
will eventually spend varied widely, from $250 billion to as
much as $2 trillion, according to a Reuters poll.
[ID:nNLLRLE6LL]
                                
 Utilities <.SX6P>, which have been among the worst
performers so far this year, rallied on Friday, with Centrica
<CNA.L> up 3.2 percent and GDF Suez <GSZ.PA> up 1.5 percent.
                                
 Around Europe, UK's FTSE 100 index <.FTSE> ended down 0.05
percent, Germany's DAX index <.GDAXI> up 0.09 percent, and
France's CAC 40 <.FCHI> down 0.03 percent.
                                
 Portugal's PSI 20 index <.PSI20> gained 0.5 percent after
the country's minority government and opposition Social
Democrats said they were ready to renew talks to approve the
2011 budget. [ID:nLDE69S12N]
                                
 Banco Espirito Santo <BES.LS> gained 1.1 percent, and Banco
BPI <BBPI.LS> rose 1.5 percent.
                                
 British Airways <BAY.L> dropped 3.6 percent, and Iberia
<IBLA.MC> fell 2.5 percent, trimming recent lofty gains, after
the two merger partners' results failed to impress investors.
                                
 Satellite operator Eutelsat <ETL.PA> dropped 1.7 percent
after the company said it had lost a satellite, though it said
it was fully insured and the loss would not change its financial
expectations for the year.
 (Editing by Will Waterman)