European shares rise in choppy trade ahead of Fed

                                
 * FTSEurofirst 300 up 0.2 percent
                                
 * Investors await U.S. Federal Reserve's policy meeting
                                
 * Mining, construction shares among top gainers 
                                
 * For up-to-the-minute market news, click on [STXNEWS/EU]
                                
 By Atul Prakash
                                
 LONDON, Sept 21 (Reuters) - European shares edged higher in
morning trade on Tuesday, supported by miners, as investors
awaited a U.S. Federal Reserve meeting to see if the central
bank announces measures to support economic recovery.
                                
 At 0831 GMT, the FTSEurofirst 300 <.FTEU3> index of top
European shares was up 0.2 percent at 1,089.76 points after
rising 1.4 percent on Monday.
                                
 The market stayed choppy, with the index falling in early
trade before turning positive, as focus remained on the Fed
meeting. Faced with a 9.6 percent jobless rate and below-target
inflation, Fed policymakers are trying to gauge how much they
could achieve if they resume massive quantitative easing.
                                
 "One would suspect that the Fed is likely to remain as
accommodative as possible in its effort to secure the economic
recovery," said Henk Potts, strategist at Barclays Wealth.
                                
 "I don't think we will see any change in the language today.
We won't see a dramatic reaction, although the potential for a
further round of quantitative easing could well be of more
interest to the market participants." 
                                
 Few analysts expect the Fed to launch a new round of bond
buying this week, and uncertainty over the impact of fresh moves
may be a factor limiting options for the central bank.
                                
 "Investors are waiting on the sidelines. Yesterday the
market went up in anticipation that the Fed can do something
about the economy, but I think people are ignoring the
macroeconomic condition," said Koen De Leus, economist at KBC
Securities in Brussels.
                                
 "There is not going to be too much change in the language of
the Fed. I think they are going to keep the interest rates low
for an extended period of time."
                                
 
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 For preview on Fed meeting: [ID:nSGE68J04M]
                                
 For graphic on Fed's balance sheet:
http://link.reuters.com/buf92k
                                

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 MINERS ADVANCE
                                
 Miners featured among the top gainers as metals prices
turned positive ahead of the Fed meeting. Anglo American
<AAL.L>, Antofagasta <ANTO.L>, Rio Tinto <RIO.L> and Xstrata
<XTA.L> rose 0.2 to 0.9 percent.
                                
 BHP Billiton <BLT.L> was up 0.3 percent. Its $39 billion
battle to take control of Canada's Potash Corp <POT.TO> is
expected to drag on into next year after it failed to win
immediate backing from Canadian authorities. [ID:nN20100852]
                                
 Construction and materials shares gained ground, with the
sector index <.SXOP> rising 1 percent on hopes of a sustained
economic recovery. Ferrovial <FER.MC>, CRH <CRH.I> and
Saint-Gobain <SGOB.PA> rose 1.5 to 1.8 percent.
                                
 The Euro STOXX 50 <.STOXX50E>, the euro zone's blue-chip
index, gained 0.4 percent to 2,812.65 points and traded above
its 200-day moving average.
                                
 Across Europe, the FTSE 100 <.FTSE>, Germany's DAX <.GDAXI>
and France's CAC 40 <.FCHI> rose 0.3 to 0.5 percent. 
 (Editing by Michael Shields)