Europe shares rise; key US labour report awaited

* FTSEurofirst 300 rises 0.4 percent

* Banks rise; Irish banks soar

* U.S. labour market report awaited

By Brian Gorman

LONDON, March 5 (Reuters) - European shares were higher in early trade on Friday, following gains in Asia and the United States overnight, and ahead of a key U.S. labour market report.

At 0920 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.4 percent at 1,040.83 points, on course for a rise of more than 3 percent in the week, and for a sixth straight day of gains.

The European benchmark is up more than 61 percent from its lifetime low on March 9, 2009.

The heavyweight banking sector added most points to the index on Friday.

Credit Suisse <CSGN.VX>, HSBC <HSBA.L>, Royal Bank of Scotland <RBS.L>, Societe Generale <SOGN.PA>, Standard Chartered <STAN.L> and UniCredit <CRDI.MI> rose between 1 and 4.2 percent. Allied Irish Banks <ALBK.I> surged 12.5 percent, taking its gain for the week to more than 40 percent, as investors took the view that the worst is over, following the company reporting a full-year loss on Tuesday.

Bank of Ireland <BKIR.I> rose 11.4 percent.

The main economic focus of the day will be at 1330 GMT, when U.S. labour data is released. The figures are expected to show that 50,000 jobs were lost in February.

"The trend in the U.S. labour market is already clear: it's stabilising, but not creating jobs," said Bernard McAlinden, investment strategist at NCB Stockbrokers.

"But the most important piece of data for the market in recent days has been the services PMI, which showed that the double dip is not going to happen."

Miners gained as the price of copper <MCU=LX> and other metals rose, supported by hopes that demand from China .

Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>, Lonmin <LMI.L> and Rio Tinto <RIO.L> rose between 1 and 1.7 percent.

Across Europe, Britain's FTSE 100 <.FTSE>, France's CAC40 <.FCHI> and Germany's DAX <.GDAXI> were up between 0.3 and 0.4 percent.

VEOLIA FALLS

French utility Veolia <VIE.PA> fell 2.4 percent after its earnings growth goals disappointed analysts who had expected more ambitious targets. [ID:nLDE6231PK]

Drugs giant GlaxoSmithKline <GSK.L> fell 1 percent after UBS cut its price target while maintaining a "buy" rating.

British publishing and events group United Business Media <UBM.L> soared 9 percent after it beat expectations with a 3 percent drop in 2009 earnings per share and said its outlook was stable despite a fall in bookings for its top trade shows. [ID:nLDE6232JZ]

U.S. stocks rose on Thursday as better-than-expected monthly sales from retailers and a drop in the number of Americans filing claims for jobless benefits pointed to stabilisation in the economy.

Japan's benchmark Nikkei 225 <.N225> closed 2.2 percent higher on Friday.

Greece's deficit continues to worry some investors. German Chancellor Angela Merkel was due to meet Greek Prime Minister George Papandreou later on Friday.

"It became the market's main neurosis," said McAlinden. "It's not resolved, but it's not going to be of cosmic significance. It's not going to break the euro." (Editing by Hans Peters)