Europe shares up after U.S. data; banks, miners gain

                                
 * FTSEurofirst 300 index up 1.1 percent
                                
 * U.S. data paints mixed picture for economy 
                                
 * Banks in demand; Lloyds slips after results

                                
 By Harpreet Bhal 
                                
 LONDON, Feb 26 (Reuters) - European shares closed higher on
Friday, as upbeat economic growth numbers from the United States
outweighed weaker consumer sentiment and housing data, with
banks strong and miners higher on firm metals prices.
                                
 The pan-European FTSEurofirst 300 <.FTEU3> index of top
shares closed up 1.1 percent at 1,007.51 points. The index lost
0.5 percent in February.
                                
 The U.S. economy grew faster than initially thought in the
fourth quarter, at 5.9 percent, as businesses drew down
inventories at a much slower pace and boosted investment.
[ID:nN25113351]
                                
 In a mixed picture for the economy, U.S. consumer sentiment
was weaker in February, the Thomson Reuters/University of
Michigan's Surveys of Consumers showed [ID:nN26171094], while
sales of previously owned homes unexpectedly plunged in January.
[ID:nN26246086]
                                
 "The housing data was pretty shocking and the markets came
off but they came back again and we have seen some buying back
from the lows," said Joshua Raymond, strategist at City Index.
                                
  A report that Germany may consider buying Greek bonds as an
emergency measure to help the debt-ridden nation soothed
investors' worries about sovereign default in the euro zone, and
helped U.S. stocks to push higher. 
                                
 Banks added the most points to the index. Barclays <BARC.L>,
HSBC <HSBA.L>, Societe Generale <SOGN.PA>, BNP Paribas <BNPP.PA>
and Deutsche Bank <DBKGn.DE> rose 1.4 to 3.2 percent. 
                                
 However, Lloyds Banking Group <LLOY.L> fell 4.4 percent
after its results, with traders saying its loan-to-deposit ratio
was too high, and its impairment guidance was not as bullish as
some had expected. [ID:nLDE61O2G9]
                                
 Macroeconomic data from Britain also lent some support to
investor sentiment, after economic growth in the fourth quarter
was revised up more than expected as new figures showed the
service sector grew five times faster than initially estimated.
[ID:nONS004824]
                                
 "There is also a big focus towards the data due next week
like the Bank of England rate decision and (U.S.) non-farm
payrolls ... and investors remain particularly sensitive to
macroeconomic data," Raymond said.
                                
 Miners were in favour, supported by firm metals prices.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L> were up 2.4 to
3.6 percent.
                                
 Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX
<.GDAXI> and France's CAC 40 <.FCHI> rose 1.2 to 1.9 percent.
                                
 
                                
 SEADRILL RISES
                                
 Upbeat corporate results helped drive individual stocks
higher. Seadrill <SDRL.OL> rose 9.2 percent after the Norwegian
oil drilling contractor reported a bigger-than-expected rise in
quarterly operating profit. [ID:nLDE61N1DD]
                                
 Building materials group Saint Gobain <SGOB.PA> climbed 7.9
percent as the company said it expected a strong rise in 2010
operating profit. [ID:nLDE61N1XR]
                                
 On the downside, Spanish wind turbine maker Gamesa <GAM.MC>
shares fell 2.8 percent after it gave 2010 results forecasts
dubbed as "disappointing" by analysts after close of market
trade on Thursday [ID:nLDE61O2KP].
                                
 Germany's largest drugmaker Bayer <BAYGn.DE> lost 1.4
percent after it forecast 2010 core profit slightly below market
expectations as higher feedstock costs held back recovery at its
plastics division. [ID:nLDE61P0AM]
 (Editing by Jon Loades-Carter)