Europe shares close higher, break losing streak
* FTSEurofirst 300 rises 0.3 pct; snaps 3 days of losses
* BP's results boost energy sector
* ING falls further; trading in shares halted
By Brian Gorman
LONDON, Oct 27 (Reuters) - European shares closed higher on Tuesday after a volatile session, with index heavyweight BP (BP.L) leading energy shares up as its results beat forecasts, although U.S. economic data limited gains.
The FTSEurofirst 300 .FTEU3 index of top European shares rose 0.3 percent to close at 999.64 points, after falling for three straight days.
The index had briefly turned negative immediately after U.S. consumer confidence data, and had been up as much as 0.9 percent earlier in the session.
The European benchmark index is up nearly 55 percent from its lifetime low of March 9 as investors have become more confident on the prospects of economic recovery. "The sentiment had become too optimistic," said Giuseppe-Guido Amato, strategist at Lang & Schwarz.
"This is no more than a correction. We are seeing some erratic moves. The trend is still on the upside."
He added: "We have liquidity. Because of lack of alternatives we will see money coming into the market."
Energy shares were among the top gainers.
Index heavyweight BP (BP.L) closed 4.8 percent higher after beating third-quarter earnings forecasts by a big margin in a sign its restructuring plans were delivering results. Its cost cuts were ahead of targets, and its oil and gas output up strongly. [ID:nLQ683027]
Total (TOTF.PA), Royal Dutch Shell (RDSa.AS), and StatoilHydro (STL.OL) were up between 1.7 and 2.6 percent as crude oil futures CLc1 rose well above $79.
U.S. consumer confidence fell to lower-than-expected levels in October amid growing concerns that job market conditions will worsen in the near term. The Conference Board said its index of consumer attitudes slipped to 47.7 in October from a revised 53.4 in September, which was originally reported as 53.1. [ID:nN27241974]
But U.S. home prices in August rose for a fourth straight month, surpassing forecasts and providing the latest sign that the hard-hit housing market is stabilizing after a three-year slump, according to the Standard & Poor's/Case-Shiller composite index of home prices. [ID:nOSL011516]
ING FALLS FURTHER
Share trading in Dutch financial services group ING (ING.AS) was halted due to a high order volume after a record number of shares traded hands and the stock lost 6.1 percent on dilution worries.
Due to the high trading volume, which amounted to almost 99.4 million shares compared to a daily average of 22.8 million, a technical error occurred. On Monday, when ING announced its rights issue plan and a split of the group into a separate bank and insurer, 91.6 million shares traded hands and the stock lost 18 percent of its value.
ING's breakup plan continued to weigh on shares of other state-aided banks such as Royal Bank of Scotland (RBS.L) and Lloyds Banking Group (LLOY.L), down 8.1 and 6.2 percent respectively.
Other banks to fall included BNP Paribas (BNPP.PA), Barclays (BARC.L), HSBC (HSBA.L), Societe Generale (SOGN.PA) and UniCredit (CRDI.MI), down between 0.8 and 3.6 percent.
Across Europe, Britain's FTSE 100 index .FTSE ended the day 0.2 percent higher, while Germany's DAX .GDAXI fell 0.1 percent. France's CAC 40 .FCHI was little changed.
Wall Street was mostly higher around the time European bourses were closing. The Dow Jones .DJI and S&P 500 .SPX were up 0.6 and 0.2 percent respectively. The Nasdaq Composite .IXIC was down 0.5 percent.
Improved margins helped Dutch chemicals group Akzo Nobel (AKZO.AS) overcome falling sales and post a surprise rise in third-quarter operating profit, but shares fell 6.3 percent on nagging worries over the company's outlook. [ID:nLQ213523]
On the positive side, Danish wind turbine builder Vestas (VWS.CO) ended 7.6 percent up after it beat third-quarter profit expectations as input costs came off their 2008 peaks and stuck to its full-year 2009 guidance. [ID:nLQ533800]
Drugs giant GlaxoSmithKline (GSK.L) rose 2.2 percent ahead of third-quarter results on Wednesday. (Additional reporting by Joanne Frearson; editing by Simon Jessop)
