Europe shares up as German growth lifts confidence

* FTSEurofirst 300 up 0.6 pct

* Germany shows robust growth in Q2; U.S. economic data eyed

* ThyssenKrupp (TKAG.DE: ) up after Q3 earnings beat forecasts

* For up-to-the minute market news, click on [STXNEWS/EU]

By Harpreet Bhal

LONDON, Aug 13 (BestGrowthStock) – Better-than-expected economic
growth in Germany boosted European shares in early trade on
Friday, with miners and oil majors rising on firmer commodity
prices as the upbeat data lifted the euro against the dollar.

By 0829 GMT, the pan-European FTSEurofirst 300 (.FTEU3: )
index of top shares was up 0.6 percent at 1,048.99 points, after
closing 0.2 percent higher on Thursday.

The index is on track to post a 0.8 percent decline this
week, following hefty falls earlier in the week on fears over
the pace of economic recovery in the United States.

Sentiment was lifted by data showing Germany’s second
quarter gross domestic product (GDP) rose by a
better-than-expected 2.2 percent in the second quarter, the
fastest rate since reunification. [ID:nLDE67B1IT]

Separate data showed French GDP rose 0.6 percent in the
second quarter, slightly higher than forecasts for a 0.5 percent
gain. [ID:nLDE67C0DK]

“The data shows that one can indeed build more confidence in
sustainable growth in Europe as opposed to the United States,
which in my view will extend the outperformance of European
markets over the U.S.,” said Heino Ruland, strategist at Ruland
Research in Frankfurt.

Miners rose, with metals prices gaining as the dollar
slipped against the euro following the strong growth figures
from Germany. Rio Tinto (RIO.L: ), Kazakhmys (KAZ.L: ), and Eurasian
Natural Resources (ENRC.L: ) added 0.9 to 1.8 percent.

Oil majors were also strong, with BP (BP.L: ), Repsol (REP.MC: )
and Total (TOTF.PA: ) up 0.2 to 0.8 percent as oil prices jumped
to above $76 a barrel on a technical rebound and as the dollar
fell.

Among individual movers, ThyssenKrupp (TKAG.DE: ) rose 2.9
percent after Germany’s biggest steelmaker’s third-quarter
earnings beat estimates and it raised its outlook for this year.
[ID:nLDE6791YR]

DATA EYED

The strong GDP data from Germany suggests quarterly growth
for the 16-nation euro zone will prove to be stronger than the
0.7 percent forecast when figures are released at 0900 GMT.
[ID:nLDE6750TQ]

Data from across the Atlantic will also likely generate
considerable interest later in the session, with July U.S.
consumer price index, real earnings and retail sales data, all
due at 1230 GMT.

Thomson Reuters/University of Michigan Surveys of Consumers
will release preliminary August consumer sentiment index at 1355
GMT.

Among other gainers, Aviva (AV.L: ) added 4 percent after Sky
TV said the firm rejected a 5 billion pound offer from RSA
Insurance Group (RSA.L: ) to buy its operations in the UK and
other markets. Aviva declined to comment. [ID:nLDE67C0F5]

RSA, meanwhile, shed 1.7 percent.

Schindler (SCHN.S: ) rose 4.8 percent. The lift-maker said its
subsidiary Also Holding (ALSN.S: ) is to merge with Actebis Gmbh,
a subsidiary of Droege International, and that the combined
group would have a turnover of around 10 billiion Swiss francs.
[ID:nWEA4129]

On the downside, Belgian supermarket group Delhaize
(DELB.BR: ) shed 6.5 percent after the firm cut it 2010 outlook
after second-quarter trading in its main market, the United
States, proved tougher than expected. [ID:nLDE67A0YB]

Across Europe, the FTSE 100 (.FTSE: ), Germany’s DAX (.GDAXI: )
and France’s CAC 40 (.FCHI: ) rose 0.2 to 0.6 percent.
(Editing by Hans Peters)

Europe shares up as German growth lifts confidence