European shares end higher on data, strong earnings

LONDON Aug 26 (Reuters) - Encouraging company results and soothing macroeconomic numbers helped European shares to bounce back on Thursday from five-week closing lows a day earlier, though the rally appeared fragile as volumes remain thin.

L'Oreal (OREP.PA), Credit Agricole (CAGR.PA), Kazakhmys (KAZ.L) and Accor (ACCP.PA) climbed 2.6 to 3.9 percent after posting strong results, while sentiment improved after figures showed new U.S. claims for unemployment benefits fell more than expected last week. [ID:nN26186848]

The FTSEurofirst 300 .FTEU3 index of top European shares provisionally closed 0.8 percent higher at 1,019.22 points after rising as high as 1,023.23 earlier in the session and hitting a five-week closing low in the previous session.

"After recent bad economic numbers and losses in equities, the market was ripe for some stabilisation and today's U.S. initial jobless claims numbers provided some support," said Tammo Greetfeld, equity strategist at UniCredit.

"But we see further deterioration in the economic outlook and expect to see lower share prices over the next couple of weeks."

Miners were the top performer, helped by a jump in base metals prices that rose on bargain hunting and a weaker dollar. The STOXX Europe basic resources index .SXPP climbed 2 percent, while Anglo American (AAL.L), Antofagasta (ANTO.L), Rio Tinto (RIO.L) and BHP Billiton (BLT.L) rose 1.8 to 3.3 percent.

(Reporting by Atul Prakash)