* FTSEurofirst 300 up 0.3 percent; snaps 3 days of losses
* BP's impressive results boost energy sector
* U.S. consumer confidence data pushes market lower
By Brian Gorman
LONDON, Oct 27 (Reuters) - European shares pared gains in afternoon trading on Tuesday after data showed U.S. consumer confidence deteriorated sharply in October.
At 1504 GMT, the FTSEurofirst 300 index of top European shares was up 0.3 percent at 999.97 points, having been down as much as 0.2 percent immediately after the data, and up as much as 0.9 percent earlier in the session. The European benchmark index is up more than 54 percent from its lifetime low of March 9, as investors have become more confident on the prospects of economic recovery.
Energy shares were among the top gainers.
Index heavyweight BP was up 4.4 percent after beating third-quarter earnings forecasts by a big margin in a sign its restructuring plans were delivering results. Its cost cuts were ahead of targets, and its oil and gas output up strongly.
Total, BG, Royal Dutch Shell, and StatoilHydro were up between 1.6 and 2.2 percent.
Banking stocks were among the worst performers. BNP Paribas , Barclays, HSBC, Societe Generale and UniCredit fell between 0.7 and 3.6 percent.
"The sentiment had become too optimistic," said Giuseppe-Guido Amato, strategist at Lang & Schwarz. "This is no more than a correction. We are seeing some erratic moves. The trend is still on the upside."
Across Europe, Britain's FTSE 100 index was up 0.4 percent, while Germany's DAX and France's CAC 40 were down 0.2 and 0.03 percent respectively.
U.S. consumer confidence fell to lower-than-expected levels in October amid growing concerns that job market conditions will worsen in the near term. The Conference Board said its index of consumer attitudes slipped to 47.7 in October from a revised 53.4 in September, which was originally reported as 53.1.
However, U.S. home prices in August rose for a fourth straight month, surpassing forecasts and providing the latest sign that the hard-hit housing market is stabilizing after a three-year slump, according to the Standard & Poor's/Case-Shiller composite index of home prices.
The Dow Jones and S&P 500 were up 0.4 and 0.1 percent respectively. The Nasdaq Composite was down 0.3 percent. (Editing by David Holmes)