* FTSEurofirst 300 up 0.3 percent
* Prudential gains on positive broker note
* EADS up on CFO newspaper interview
* Mining shares slip as dollar strength huts metals
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By Harpreet Bhal
LONDON, Dec 8 (Reuters) - European shares rose slightly by midday on Wednesday, with a major index holding above a key technical level, as gains in insurers more than offset falls in heavyweight miners as the dollar edged up.
By 1204 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.3 percent at 1,118.93 points, trading within a whisker of a 26-month intraday high at 1,119.42 hit in the previous session.
The Euro STOXX 50 index, the euro zone's blue-chip index, rose 0.3 percent to 1,811.75 points -- holding above its 61.8 percent Fibonnaci retracement from a high in April to a low in May.
"Overall these markets are quite well supported. There has been a lot of strength since the Irish problem has been sorted out," said David Jones, chief market strategist at IG Markets.
"There is still an appetite out there to buy on weakness."
Insurers were among the biggest gainers, with Prudential adding 2.7 percent after broker UBS added the British firm to its "key calls" list and raised its price target on growth prospects in Asia.
Within the sector, Zurich Financial, AXA and Aviva rose 1.4 to 2.8 percent.
A drop in commodity issues, however, limited further gains for equities as the dollar rose across the board following a spike in U.S. Treasury yields.
U.S. Treasury prices fell sharply, with the 10-year yield hitting its highest since June, after a proposed extension of tax cuts brightened the outlook for U.S. growth but raised fears of fiscal deterioration.
Heavyweight miners slipped as the strong dollar caused copper prices to ease off record highs. Eurasian Natural Resources, Kazakhmys and Randgold Resources shed 1.1 to 1.4 percent.
EADS GAINS
Among individual gainers, aerospace group EADS rose 2.2 percent after its Chief Financial Officer Hans Peter Ring said in a newspaper interview that he expects profit to improve significantly in 2012.
Bid speculation helped Smith & Nephew rise 5.2 percent. The Daily Mail newspaper's market report noted talk of a 7.1 billion pound, or 8 pounds-a-share cash offer from a U.S. consortium of private equity players for the maker of replacement knees and hips.
Smith & Nephew was not immediately available for comment.
On the economic front, German industrial output rose at its strongest monthly rate since May in October, adding to views that Europe's largest economy will prove more resistant to a sovereign debt crisis than its peers.
"The euro zone debt crisis hasn't gone away. Spain remains the thing to watch," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.
"But it will not be enough to stop a rally in global equity markets. The data, especially PMIs, has been reasonably good, with good figures out of Germany, though the U.S. labour market data has been disappointing." (Additional reporting by Brian Gorman; Editing by Louise Heavens) ((harpreet.bhal@thomsonreuters.com; +44 207 542 4533; Reuters Messaging: harpreet.bhal.thomsonreuters.com@reuters.net))