European shares up on oil-led UK rally, U.S. data

FRANKFURT Aug 27 (Reuters) - European shares rose on Wednesday thanks to an oil-powered rally in British stocks and a surprise rise in U.S. durable goods data, which suggested that the world's largest economy may avoid recession.

The FTSEurofirst 300 .FTEU3 index of top European shares closed unofficially 0.2 percent higher at 1,173.63 points, led by energy stocks, which climbed 1.5 percent on the sector index .SXEP.

Among UK oil majors, Royal Dutch Shell (RDSa.L) added 2.3 percent and BP (BP.L) gained 1.8 percent as crude oil prices CLc1 rose for the third straight day, hitting $119 a barrel.

Banks .SX7P were mixed, with Britain's HBOS HBOS.L up 2.8 percent while Swiss UBS (UBSN.VX) fell 1.3 percent.

Hit by a brokerage downgrade, Finnish mobile phone maker Nokia (NOK1V.HE) was among leading blue-chip losers, falling 1.4 percent and giving up half of its gains in the previous session.

London's FTSE 100 index .FTSE rose 1.1 percent while Germany's DAX .GDAXI fell 0.3 percent and the French CAC 40 .FCHI edged up 0.1 percent. (Reporting by Peter Starck)