LONDON, Oct 1 (Reuters) - European shares rose in early trade on Thursday, with the heavyweight banking sector adding most points to the index.
At 0710 GMT, the FTSEurofirst 300 index of top European shares was up 0.4 percent at 1,001.43 points. The index fell 0.5 percent on Wednesday but rose 17.3 percent between July and September, the best quarterly performance in nearly 10 years.
Among banks on the rise, Credit Suisse, Societe Generale and UniCredit were up between 1 and 1.7 percent.
"I don't think anyone will sell too aggressively ahead of the (U.S.) September employment report tomorrow," said Bernard McAlinden, investment strategist at NCB Stockbrokers. "The economic data hasn't been bad. House prices have been firm."
The European benchmark index is up more than 55 percent from its lifetime low of March 9, as investors have become more confident on the prospects of recovery.
"I think we're in the early stages of a new cycle and indices can go higher over the next year or so though the pace at which this rally can continue is questionable," said McAlinden. BAE Systems, Europe's largest defence contractor, fell 1.8 percent after the BBC reported that Britain's Serious Fraud Office would pursue bribery charges against the company in relation to defence contracts in several countries overseas,
Norwegian video-conferencing equipment maker Tandberg ASA rose 12.8 percent after U.S. network equipment maker Cisco System said it would buy the company for an agreed 17.2 billion Norwegian crowns ($3.0 billion) in cash. (Reporting by Brian Gorman)