GLOBAL MARKETS-Central bank liquidity moves help stocks higher

(Updates, adds Wall Street outlook)

By Jeremy Gaunt, European Investment Correspondent

LONDON, March 27 (Reuters) - Central banks moved to provide extra liquidity to stressed markets on Thursday, helping boost European shares, while the dollar recovered some strength after a recent battering.

Wall Street also looked set for a positive start, although Asian shares closed generally lower. They were hit by signs that the U.S. economy is flagging, including tumbling orders for U.S.-made manufacturing goods, along with worries about more bank write-downs after a number of earnings downgrades.

The European Central Bank promised publicly to add additional liquidity if needed as the quarter comes to an end and the Bank of England and Swiss National Bank operated in the markets to try to get interbank lending rates down.

Traders and analysts said extra liquidity would be welcomed given fresh tensions on markets which have pushed short-term interbank lending rates to their highest level this year.

"It seems to be the same old story - there's a scramble for cash at the moment," said a trader in Dublin.

Buoyant earnings in Europe also boosted sentiment with better-than-expected results from Swedish fashion giant Hennes & Mauritz (HMb.ST: Quote, Profile, Research) and from insurer Swiss Life (SLHN.VX: Quote, Profile, Research) supported buyers.

The FTSEurofirst 300 index was up 0.9 percent, having closed down in the previous session, part of an increasing yo-yo effect on financial markets in general.