* FTSEurofirst 300 up 0.2 percent
* Renault gains on Volvo stake sale; carmakers edge up
* ECB, BoE keep interest rates on hold as expected
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Harpreet Bhal
LONDON, Oct 7 (Reuters) - European shares rose on Thursday,
with Renault
By 1154 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.2 percent at 1,072.33 points.
Carmakers were higher, led by a 7.4 percent gain in Renault
after the French carmaker said it has sold a chunk of its 21.7
percent stake in Swedish truck maker Volvo
Within the sector, Daimler
A fall in heavyweight mining shares put some pressure on the
market, with Kazakhmys
Shares held on to gains after the European Central Bank ECB) kept interest rates on hold at 1.0 percent as anticipated. ECB President Jean-Claude Trichet will hold a news conference at 1230 GMT. [ID:nFAE005736]
Equities have been boosted by growing speculation that the U.S. Federal Reserve could embark on more quantitative easing measures after the Bank of Japan unexpectedly cut rates close to zero on Tuesday and said it would pour money into the markets through asset purchases.
Analysts, however, said the move would not be a long-term solution to spur economic growth.
"Quantitative easing in the U.S. is intended to effectively devalue the currency and replace an economic stimulus.
"But there is no short-term solution. They don't produce anything in the U.S. which is in demand outside the country, which could improve their trade account," said Heino Ruland, strategist at Ruland Research in Frankfurt.
Earlier, the BoE left interest rates at 0.5 percent for a 20th consecutive month and kept its asset-buying programme on hold, but the outcome probably masked a vigorous debate about whether economic conditions require tighter or looser policy.
Across Europe, Britain's FTSE 100 and Germany's DAX were flat, while France's CAC 40 gained 0.2 percent.
(Editing by David Hulmes)