* FTSEurofirst 300 index closes 0.2 percent higher
* Banking shares in euro zone peripheral countries rise
* Hennes & Mauritz pulls retailers lower after results
By Brian Gorman
LONDON, Jan 27 (Reuters) - European shares edged up on Thursday, led by banks, as Banco Santander rose ahead of results next week and Spain stepped up efforts to restructure its savings banks.
Strong U.S. earnings have also raised investors' hopes that European companies may also report better-than-expected results.
The FTSEurofirst 300 index of top shares rose 0.2 percent to close at 1,154.58 points after falling to a low of 1,150.12 earlier in the session.
"The market has been pretty resilient, though some of the data has been variable," said Bill Dinning, head of strategy at Aegon Asset Management in Edinburgh.
"Corporate earnings season has been pretty good. But there is a lot of complacency -- investors began the year feeling good about the trends after a good December. The macro backdrop may give further cause for concern -- there is still some fragility, and it will challenge the benign view."
Banks to gain included Banco Santander, BBVA, Intesa SanPaolo and Societe Generale, up between 3.1 and 4.9 percent.
Banks, especially those based in the euro zone's peripheral economies, have been volatile in recent days. Spain stepped up the pace of bank restructuring on Thursday, raising fresh funds from investors to help weaker banks, while savings bank La Caixa considered a shake-up that could help it raise private capital.
The plight of the savings banks has prompted fears that Spain could require an European Union-backed bailout, like Ireland.
Shares in European insurers gained strongly, with some hitting their highest levels in over a year, amid bullish broker comment.
Swiss Life, Old Mutual, ING and Aviva rose between 4.1 and 5.2 percent.
New U.S. claims for unemployment benefits rose more than expected last week as harsh weather in some parts of the country kept workers at home and caused a backlog in the processing of claims.
A separate report from the Commerce Department showed a nearly 100 percent drop in civilian aircraft orders led to orders for long-lasting manufactured goods dropping 2.5 percent in December.
However, U.S. home sales data was ahead of forecasts and the S&P 500 held near 29-month highs as European bourses were closing.
Across Europe, Britain's FTSE 100 fell 0.1 percent; Germany's DAX and France's CAC40 rose 0.4 and 0.3 percent respectively.
RETAILERS SLIDE
Retailers were the top decliners, dragged down by Swedish budget fashion giant Hennes & Mauritz. Its shares fell 7.3 percent after it posted a surprise fall in pretax profit and its gross margin fell more than expected. The European retail sector index fell 1.7 percent.
Among other shares, Aperam, the stainless steel company spun out of ArcelorMittal, this week, gained 5.3 percent.
A cut in Japan's credit rating by Standard & Poor's knocked investor sentiment earlier in the day. The agency cut Japan's long-term sovereign debt rating for the first since 2002 saying the country's government lacked a coherent plan to tackle its mounting debt.
"There is a possibility of new tensions in the euro zone and Japan reminds us that many countries are reasonably indebted. I think we are in a late stage of this rally and are not too far from some correction," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets. (Additional reporting by Atul Prakash; Editing by Erica Billingham)