* FTSEurofirst 300 up 0.3 pct at 8-week closing high
* Ericsson, carmakers gain on strong earnings
* Fed's Bernanke seen indicating no haste to tighten policy
By Harpreet Bhal
LONDON, April 27 (Reuters) - Strong corporate earnings in
the technology and auto sector pushed up European shares on
Wednesday, helped by anticipation that the U.S. will confirm its
loose monetary policy later in the day.
U.S. Federal Reserve Chairman Ben Bernanke is set to
indicate a patient approach to withdrawing the central bank's
ultra-loose policy when he gives a news conference at 1815 GMT
after a policy announcement at 1630 GMT, in a move likely to
fuel medium-term appetite for risky assets []
The pan-European FTSEurofirst 300 <> index of top
shares closed 0.3 percent higher at 1,147.24 points, its highest
close since early March, though volumes were below its 90-day
average.
Wider gains on the index, however, tempered by persistent
fears that highly indebted Greece will need to restructure its
debt, pushed Greek government bond yields to euro lifetime high
and hit its banking shares <.FTATBNK> which shed 3.6 percent.
In a positive trend for equities, the Euro STOXX 50
<>, the euro zone's blue chip index, held significantly
above its 50-day moving average of 2,931.62, and analysts said
the bullish trend remained intact for now.
"The short-term upward bias for equities remains up,
confirming the current risk-on situation on the financial
markets," said Roelof-Jan Van den Akker, senior technical
analyst at ING.
"A close above the previous highs around 2,992 opens the way
for a test of the longer-term crucial resistance in the line
chart around the 3,100 level," he said, adding that a close
above 3,100 would prompt a longer-term "buy" signal.
The index closed 0.8 percent higher at 1,977.59 points.
Upbeat earnings helped individual shares push higher, in a
confirmation of brightening prospects for companies as the
economy recovers.
Telecoms gear maker Ericsson <ERICb.ST> rose 10.8 percent to
the top of the FTSEurofirst 300 leaderboard after it beat
first-quarter core profit expectations. []
Carmakers were also on the rise, with Germany's Volkswagen
<VOWG_p.DE> and Porsche <PSHG_p.DE> both up around 6 percent on
robust first-quarter results, while France's Renault <RENA.L>
added 3.8 percent after posting better-than-expected sales.
[] []
Barclays <BARC.L>, however, was pressured by disappointing
earnings, dropping 4.8 percent after the British lender's
first-quarter profit fell on the back of lower income at its key
investment banking unit.
DATA SUPPORTS
The FTSEurofirst 300 index earlier extended gains after data
showed new orders for durable goods in the United States rose
solidly in March, and bookings for the prior month were much
stronger than initially thought, pointing to strength in the
manufacturing sector. []
The data comes as the U.S. Federal Reserve is seen keeping
to its $600 billion bond buying programme, taking the view that
the economy still needs monetary policy support, even as hawkish
Fed officials have recently voiced the need for tightening to
avoid stoking rising inflation.
"Investors want to know exactly how the monetary authority
will develop its current economic policy, with inflation likely
to be the hot topic on the agenda," said Ben Critchley, sales
trader at IG Index.
(Editing by Will Waterman)
