European shares end higher on strong financials

LONDON, July 27 (Reuters) - European shares ended at their highest in five weeks on Tuesday as strong results from UBS (UBSN.VX) boosted financials, but lower-than-expected reading from U.S. consumer confidence pared earlier gains.

The FTSEurofirst 300 .FTEU3 index of top European shares advanced for a sixth straight session and provisionally finished 0.5 percent firmer at 1,053.74 points, the highest close since June 21 but lower than the index's intra-day high of 1,061.46.

Financials were among the top gainers, with the STOXX Europe 600 banking index .SX7P rising 4.7 percent. UBS surged 11.2 percent after posting second-quarter net profit well above forecasts, while Barclays (BARC.L), Lloyds (LLOY.L) and Societe Generale (SOGN.PA) jumped 7.5 to 11.2 percent.

"People are still cautious and only adjusting their positions in line with the climbing market. We have enough buying power standing on the sidelines and have potential to test the upper trading range," said Giuseppe-Guido Amato, strategist at Lang & Schwarz in Frankfurt.

European shares erased a significant part of earlier gains after data showed U.S. consumer confidence sank in July to its lowest since February on job market worries, underscoring the slow path to economic recover. [ID:nN27260375]

(Reporting by Atul Prakash)