European shares rise after U.S. data; banks gain

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 FTSEurofirst 300 .FTEU3 index of top European shares provisionally closed 1 percent higher at 1,006.73 points, and was down 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, fresh evidence the housing market has yet to find stable ground. [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 ... investors remain particularly sensitive to macroeconomic data," said Joshua Raymond, strategist at City Index.

Banks were among the biggest gainers, with Barclays (BARC.L), HSBC (HSBA.L), Societe Generale (SOGN.PA), BNP Paribas (BNPP.PA) and Deutsche Bank (DBKGn.DE) up 1.5 to 2.2 percent.

Upbeat corporate results also helped drive individual stocks higher. Seadrill (SDRL.OL) rose 9.2 percent after Norwegian oil drilling contractor reported a bigger-than-expected rise in quarterly operating profit, and saw improving results in coming years. [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]

Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI rose 1.1 to 1.8 percent. (Reporting by Harpreet Bhal)