* FTSEurofirst 300 gains 1.3 pct; ends two-day losing run
* Miners, banks gain
* Eyes on U.S. macro data later in the day
* For up-to-the-minute market news, click on
By Christoph Steitz
FRANKFURT, Aug 28 (Reuters) - European shares were higher in midday trade on Friday, ending a two-day losing streak as mining and banking stocks buoyed the leading index ahead of key U.S. economic data due later.
At 1034 GMT, the FTSEurofirst 300 index of top European shares was up 1.3 percent at 980.77 points, and on track for its second consecutive month of gains.
The index, which plummeted 45 percent in 2008, is up 18 percent this year and has surged 52 percent from a record low in March.
Banks added the most points to the index, with Barclays, Lloyds Banking Group, Royal Bank of Scotland and BNP Paribas rising 0.6-4.5 percent.
"Over the last two days, we have seen the sceptical view returning to the markets, but since July all those smaller downturns have been fought back and there is further upward potential," Commerzbank's chief strategist, Hans-Juergen Delp, said.
Commerzbank jumped 6.7 percent on talk Germany might be seeking to reduce its stake in the country's second-largest bank. A spokesman for the finance ministry denied the speculation.
Across Europe, Britain's FTSE 100 index, Germany's DAX and France's CAC 40 rose 1-1.4 percent.
ON THE UPSIDE
Miners rose on higher metals prices and a European basic resources Index was the top sectoral gainer, up 2.3 percent.
BHP Billiton, Anglo American, Antofagasta, Rio Tinto and Xstrata rose between 1.9 and 4 percent.
Among other individual movers, L'Oreal advanced 6.2 percent after the French beauty products giant posted better-than-expected first-half profit.
Alcatel-Lucent also rose 3.2 percent. A Huawei source said on Friday that China's Huawei has no plans to take a stake in the company, two days after the French-American telecoms equipment maker's stock jumped on market chatter a Chinese rival could acquire it.
"There is only one clear trend in the market and that's on the upside. People are coming back with a lot of inflows in favour of equities and outflows are coming from the money market," said Romain Boscher, head of equity management at Groupama Asset Management, in Paris.
A slew of macroeconomic data also signalled improving conditions in Europe. Britain's economy shrank a smaller than expected 0.7 percent in the second quarter, after statisticians revised up their estimates for the manufacturing, energy, wholesale, and motor vehicles sectors.
Euro zone economic sentiment, too, improved more than expected in August, but consumer inflation expectations continued to fall, setting a new record low, data showed.
Later, investors will focus on U.S. personal income and consumption data at 1230 GMT, Reuters/University of Michigan Surveys of Consumers at 1355 GMT and Economic Cycle Research Institute's weekly index of economic activity at 1430 GMT. (Additional reporting by Atul Prakash in London; Editing by Dan Lalor)