European shares rise after raft of U.S. data

* FTSEurofirst closes 0.5 percent higher

* Drugmakers among strongest gainers

* Miners rise with metal prices, with gold at fresh high

* Compass rises 6.1 pct after results beat forecast

By Brian Gorman

LONDON, Nov 25 - European stocks closed higher on Wednesday, with pharmaceuticals among the best performers, after a raft of U.S. macro-economic data ahead of the Thanksgiving Day holiday was mostly positive.

The FTSEurofirst 300 <.FTEU3> index of top European shares rose 0.5 percent to close at 1,021.95 points, having moved as high as 1,026.85 and eased to 1,015.76.

Among drugmakers, GlaxoSmithKline <GSK.L>, Novartis <NOVN.VX>, AstraZeneca <AZN.L>, Roche <ROG.VX> and Sanofi-Aventis <SASY.PA> rose between 0.5 and 2.5 percent.

The European benchmark is up more than 58 percent from its lifetime low of March 9, as investors have become more confident on the prospects for economic recovery.

But the DJ Stoxx Health Index <.SXDP> has lagged the rally, up 31 percent in the same period.

Initial claims for state unemployment benefits in the United States slid to a seasonally adjusted 466,000 in the week ended Nov. 21, from a revised 501,000 in the prior week, the Labor Department said. [ID:nN25548443]

Figures also showed that U.S. October personal spending rose more than expected in October and personal income was up 0.2 percent against a forecast of 0.1 percent. But new orders for long-lasting U.S. manufactured goods fell unexpectedly in October. [ID:nN25346193]

"The market is facing a barrage of data, and we still believe there will be further improvement in economic activity, though it has been more mixed lately," said Gerhard Schwarz, head of global equity strategy at UniCredit, in Munich.

Other data, notably that showing higher home sales in October and stronger readings from the Reuters/University of Michigan Surveys of Consumers, supported the market. [ID:nN25342326] [ID:nN11344865]

Earlier, some traders worried as Dubai's government said it would ask creditors for two of its flagship firms for a debt standstill sending the cost of insuring its debt against default soaring and bond prices tumbling. [ID:nGEE5AO13A]

"It's tough to judge as we don't know the detail, but it shows there's still some risk coming from the credit crisis," said UniCredit's Schwarz.

Around Europe, UK's FTSE 100 index <.FTSE> ended the day 0.8 percent higher, Germany's DAX index <.GDAXI> rose 0.6 percent, and France's CAC 40 <.FCHI> was up 0.7 percent.

Wall Street was higher around the time European bourses were closing. The Dow Jones <.DJI>, S&P 500 <.SPX> and Nasdaq Composite <.IXIC> were up 0.4 percent. U.S. markets will remain closed for the Thanksgiving Day holiday on Thursday, and will close early on Friday.

COMPASS GAINS

Compass Group <CPG.L>, the world's biggest caterer, closed 6.1 percent higher after it reported a 33-percent rise in full-year pretax profit, at the top end of market expectations.

Vivendi <VIV.PA> gained 4.3 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.

Aerospace major EADS <EAD.PA> dropped 3.8 percent after Natixis and Citigroup trimmed their price target on the stock and as the dollar drifted lower against the euro, traders said.

London Stock Exchange fell 3.8 percent after first-half profit fell. [ID:nGEE5AN22A]

Mining stocks gained ground, rising with metal prices, as gold prices hit record highs above $1,180.00 an ounce, lifted by a report that India may consider buying more bullion from the International Monetary Fund. A weaker dollar, trading at more than $1.50 against the euro, also helped boost prices.

Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>, Lonmin <LMI.L> and Xstrata <XTA.L> rose between 1.4 and 3.2 percent.

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] (Additional reporting by Blaise Robinson; Editing by David Cowell) (brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters Messaging: brian.gorman.thomsonreuters.com@reuters.net))