Euro Shares Break Losing Streak, Eke Out Gain

European stocks snapped a three-day losing run to close slightly up on Thursday, but were well below the day's highs as investors faced further evidence of a deepening recession in the United States.

The FTSEurofirst 300 index of top European shares rose 0.1 percent to close provisionally at 764.04 points, having been up as much as 1.1 percent. The index has lost 8.2 percent this year, having fallen 45 percent in 2008.

"US data continues to get worse and worse, and is even coming in below expectations," said Georgina Taylor, equity strategist at Legal & General.

"The last few days have highlighted that the volatility is going to continue. Taking a directional view is very difficult when none of the data is suggesting that we're anywhere near a turning point," Taylor said.

The number of US workers drawing unemployment aid jumped to a record high in early February according to data that highlighted the deteriorating labor market as a 13-month recession deepens.

The Federal Reserve Bank of Philadelphia said its index of business conditions in the US Mid-Atlantic region fell in February to -41.3, the lowest level since 1990, from -24.3 in January.

Nestle, the world's biggest food group, rose 5.2 percent after the company beat forecasts with underlying sales growth of 8.3 percent in 2008 and was cautiously upbeat for 2009. Other food groups were on the rise, with Danone up 1.8 percent.

But AXA lost 9.2 percent after Europe's second-biggest insurer's results failed to reassure investors and on mounting worries over the group's balance sheet.

Other insurers to fall included Swiss Re, which lost 5 percent. 

Across Europe, Britain's FTSE 100 rose 0.4 percent; Germany's DAX was up 0.2 percent and France's CAC-40 lost 0.01 percent.

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