European shares rebound ahead of U.S. GDP data

* FTSEurofirst 300 rebounds from 7-week low; up 0.7 pct

* Banking, energy and mining shares among top gainers

* Investors await U.S. GDP data for market direction

* For up-to-the-minute market news, click on [STXNEWS/EU]

By Atul Prakash

LONDON, Jan 29 (Reuters) - European equities bounced back on Friday after hitting seven-week lows in the previous day, with banks regaining strength and firmer crude supporting energy shares, but investors traded cautiously ahead of U.S. GDP data.

At 1217 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.7 percent at 1,009.04 points after falling 1.2 percent in the previous session. It has gained only in two of eight sessions and is on course to post its worst monthly decline since last February.

The index is down 6 percent since hitting a 15-month high on Jan. 11, but is still up 56 percent from its record low in March 2009. The benchmark gained 26 percent last year.

Banks were among the top gainers, with DJ STOXX European banking index .SX7P rising 1.4 percent after falling in the past two days partly on concerns about Greece's fiscal health.

Standard Chartered (STAN.L), HSBC (HSBA.L), Barclays (BARC.L), Lloyds (LLOY.L), BNP Paribas (BNPP.PA), Societe Generale (SOGN.PA) and Credit Agricole (CAGR.PA) were up 0.3 to 1.9 percent. Greek bank shares .FTATBNK rose 1.7 percent.

Investors awaited U.S. gross domestic product (GDP) data, due at 1330 GMT, for a clearer market direction. A Reuters survey has predicted that the GDP, which measures total goods and services output within U.S. borders, expanded at a 4.6 percent annual rate, up from 2.2 percent in the third quarter.

"The authorities in the United States have been very aggressive, innovative and proactive in terms of instituting measures to make sure the U.S. economy starts to grow at a steady pace. And the markets will be watching for further evidence about the speed and strength of that recovery coming through," said Henk Potts, equity strategist at Barclays Wealth.

"Investors have been spooked by the fact that we have seen a rather lacklustre earnings reason so far and companies have failed to deliver a strong outlook. But corporate profitability will be bouncing back strongly during the course of this year."

Energy shares were also in demand as crude oil CLc1 rose above $74 a barrel. BP (BP.L), Royal Dutch Shell (RDSa.L), BG Group (BG.L), Tullow Oil (TLW.L), Repsol (REP.MC) and Total (TOTF.PA) and added 0.6 to 2.1 percent.

Across Europe, Britain's FTSE 100 index .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI rose 0.7 to 0.9 percent.

MACROECONOMIC INDICATORS

Investors looked for signs of global economic recovery. Germany's Finance Ministry said robust foreign trade and firmer investment will help keep the country's recovery intact though the pace of growth will likely slow from levels seen last year. [ID:nBAF003955]

Figures showed British house prices jumped at their sharpest pace in five months in January and consumer confidence rose more than expected in a sign the economy got off to a good start in the new year. [ID:nLDE60S0AB]

However, problems in countries such as Greece have forced equity investors to stay cautious. Greek Prime Minister George Papandreou said the country was the victim of speculators intent on attacking a "weak link" in the euro zone and would not need to be bailed out.

Markets are still worried Athens will not be able to service its debt, putting pressure on the euro and raising speculation as to whether Greece could be forced out of the currency bloc.

"We still have the situation with Greece and the problem is shifting to Portugal. (U.S. President Barack) Obama is also introducing a lot of anxiety," said Philippe Gijsels, senior equity strategist at Fortis Bank.

BHP Billiton (BLT.L), the world's biggest miner, rose 1.3 percent. The miner has approved $1.93 billion in capital expenses to spruce up rail and port facilities. [ID:nSGE60R0MC]

Anglo American (AAL.L), Antofagasta (ANTO.L), Rio Tinto (RIO.L) and Xstrata (XTA.L) rose 0.5 to 1.5 percent.

BMW (BMWG.DE), the world's biggest premium automaker, was up 3.3 percent after it forecast a modest rise in car sales this year and confirmed it expected a 2009 pretax profit despite the global economic crisis. [ID:nLDE60S09R] (Additional reporting by Joanne Frearson; editing by Karen Foster)