Europe shares gain in early trade; jobs data eyed
* FTSEurofirst 300 .FTEU3 index rises 0.2 pct
* Banks rise
* Lafarge, L'Oreal drop after results
By Brian Gorman
LONDON, Nov 6 (Reuters) - Europe shares edged up in early trading on Friday ahead of a key U.S. employment report, with companies such as Royal Bank of Scotland (RBS.L) and British Airways gaining (BAY.L) after results.
At 0929 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.2 percent at 992.54 points.
The European benchmark is up more than 53 percent from its lifetime low on March 9, as investors have become more confident on the prospects for economic recovery.
Royal Bank of Scotland (RBS.L), majority-owned by the British state, rose 4 percent after it more than halved its operating loss to 1.5 billion pounds ($2.5 billion) in the third quarter as impairments fell. [ID:nL6671701]
Banking heavyweights which also rose included BNP Paribas (BNPP.PA), Banco Santander (SAN.MC), Credit Suisse (CSGN.VX), Deutsche Bank (DBKGn.DE), HSBC (HSBA.L) and UBS UBS.AG, up between 0.9 and 3 percent.
The European banking sector .SX7P was up 159 percent from the March low. U.S. stocks jumped on Thursday, with the Dow Jones industrial average .DJI closing above 10,000 for the first time in two weeks, as economic data boosted confidence in the recovery and strong results from Cisco Systems (CSCO.O) suggested a rebound in technology spending.
At 1330 GMT, investors' attention will switch to the United States, where key non-farm payrolls data is due. According to a Reuters poll, 175,000 jobs were lost in October, down from 263,000 in September.
"It's going to get tougher for the market to rise further as economic surprises lessen," said Bernard McAlinden, investment strategist, NCB Stockbrokers. "But a good labour report today could see the market testing post-recovery highs soon. Cisco showing top-line growth was a major factor. People already know about cost-cutting."
Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC-40 .FCHI were up between 0.1 and 0.2 percent.
LAFARGE FALLS Continued...
