European stocks bounce back; all eyes on U.S. data

* FTSEurofirst rises 0.5 percent, up 4.7 percent this month

* EADS hit by weakening dollar; worries over orders

* Miners rise along with metal prices

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

By Blaise Robinson

PARIS, Nov 25 - European stocks were up 0.5 percent at midday on Wednesday, bouncing back after the Federal Reserve raised its expectations for growth in 2010, while investors braced for a flurry of U.S. macro data.

At 1233 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.5 percent at 1,021.98 points. The index, which fell 0.7 percent on Tuesday, has gained 4.7 percent so far in November.

"The market is reaching a ceiling, despite improvements in analysts' consensus on expected corporate earnings," said Francois Chevallier, strategist at Banque Leonardo, in Paris.

"There are concerns over a double dip as the economic boost from stimulus plans wane, but overall risk aversion hasn't been rising. Good news from companies are priced in, and the market is now focusing on jobs and consumer sentiment. That could be the next catalyst," Chevallier said.

Investors awaited a slew of U.S. macroeconomic data due later in the day, including weekly jobless claims, monthly new home sales, the final reading of the Reuters/University of Michigan sentiment index and orders for durable goods.

Minutes from the Fed's November policy meeting showed on Tuesday that Fed officials are increasingly confident the U.S. economic recovery will be durable, but do not see employment or inflation picking up soon. [ID:nN24313828]

In Europe, a Reuters poll found the European Central Bank will not budge on interest rates when it meets next week and it will be near the end of 2010 before it raises them, despite brightening their growth outlook. [ID:nLAG005940]

But investors remained cautious after International Monetary Fund chief Dominique Strauss-Kahn was quoted as saying that half of the losses suffered by banks could still be hidden in their balance sheets, more so in Europe than in the United States. [ID:nGEE5AN2SO]

MINERS ADVANCE, EADS SLIPS

Steel and mining stocks gained ground on Wednesday, rising along with metal prices, with gold prices hitting record highs at $1,180.00 an ounce, lifted by a report that India may consider buying more bullion from the International Monetary Fund, and the weaker dollar.

BHP Billiton <BLT.L> gained 2.6 percent, Anglo American <AAL.L> rose 2.3 percent and ArcelorMittal <ISPA.AS> was up 1.7 percent.

Around Europe, UK's FTSE 100 index <.FTSE> was up 0.6 percent, Germany's DAX index <.GDAXI> up 0.5 percent, and France's CAC 40 <.FCHI> up 0.7 percent.

Aerospace major EADS <EAD.PA> dropped 4.8 percent after Natixis and Citigroup trimmed their price target on the stock and as the dollar drifted lower against the euro, traders said.

Around midday, the euro extended its gains versus the dollar, rising to a 15-month high of $1.5081 <EUR=>.

Citi analysts, who cut their target for EADS to 14.50 euros from 16.50 euros, said : "A meaningful recovery in earnings looks unlikely until 2012 due to falling deliveries and continued FX headwinds, in our opinion. We still expect production cuts in 2010 and 2011, with deliveries falling 15-20 percent cumulatively."

Compass Group <CPG.L>, the world's biggest caterer, jumped 5.6 percent after it reported a 33-percent rise in full-year pretax profit, at the top end of market expectations.

Vivendi <VIV.PA> gained 3.3 percent after Exane BNP Paribas upgraded the stock to "outperform", saying Europe's largest entertainment group may positively surprise investors on both operating and M&A issues.

((blaise.robinson@reuters.com ; +33 1 4949 5269, Reuters Messaging: blaise.robinson.reuters.com@reuters.net))