Europe stocks hit 3-wk closing high on Chinese data

* FTSEurofirst300 up 0.4 pct

* Financials, miners advance; Chinese data supports stocks

* Sainsbury rises 3.2 percent after results

By Atul Prakash

LONDON, Nov 11 (Reuters) - European shares hit a three-week closing high on Wednesday, boosted by financials and miners and a renewed appetite for risk following positive macro-economic data from China.

Comments from Federal Reserve officials reinforcing the view that U.S. interest rates will remain near zero for some time also supported stocks, but pushed the dollar to a 15-month low before the currency recovered in a technical rebound.

The FTSEurofirst 300 .FTEU3 index of top European shares ended up 0.4 percent at 1,013.87 points, the highest close since Oct. 22. The index, which has gained in five of six sessions, is up 22 percent in 2009 and has surged 57 percent since hitting a record low in early March.

Banks were among the top gainers, with France's biggest retail bank Credit Agricole (CAGR.PA) rising 5.6 percent after the lender's third quarter net profit fell less than expected and the bank chose a new chief executive.

Standard Chartered (STAN.L), HSBC (HSBA.L), Lloyds (LLOY.L), BNP Paribas (BNPP.PA), Societe Generale (SOGN.PA), Natixis (CNAT.PA) and UBS (UBSN.VX) rose 0.9 to 4.7 percent.

"Positive macro-economic data from China helped the market today," said Tammo Greetfeld, equity strategist at UniCredit.

"The recent macro data has alleviated some concerns and we are convinced that the equity market will get a tailwind from positive data in the coming months. We think that the cyclical high in equities is still to come," he added. Chinese factory output growth surged to a 19-month high in October, showing the world's third-largest economy has put the worst of the global financial crisis behind it. [ID:nPEK212006]

Insurers also gained. ING (ING.AS) rose 6.6 percent after posting a third-quarter profit in line with pre-announced results and said it has received strong interest in its insurance business, which is up for sale. [ID:nLB95132]

The VDAX-NEW volatility index .V1XI fell to a two-week low. The lower the index, which is based on sell and buy options on Frankfurt's top-30 stocks <0#.GDAXI>, the higher is the risk appetite.

Across Europe, Britain's FTSE 100 index .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI rose 0.7 to 1 percent.

"Progress continues to be tougher going after the recent giddy gains, but investors remain keen to look beyond the negatives and keep their appetite for optimism - and risk - strong," said David Jones, chief market strategist at IG Index.