European shares edge higher; payrolls figures eyed

* FTSEurofirst 300 rises 0.4 pct

* Deutsche Boerse up on Russia alliance talk

* For up-to-the-minute market news, click on [STXNEWS/EU]

By Brian Gorman

LONDON, Dec 3 (Reuters) - European shares edged up early on Friday after strong gains in the previous two sessions, with the European Central Bank said to be buying more bonds to combat the euro zone debt crisis. [ID:nLDE6B20AX]

The market will look for direction later in the session from the U.S. monthly non-farm payrolls report.

At 0956 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.4 percent at 1,110.69 points, after rising 3.7 percent over the previous two sessions.

The index is on course to register a 2.2 percent gain for the week, and is up more than 72 percent from its lifetime low of March, 2009, helped by stimulus from governments and central banks worldwide.

"There's a positive tone to the market, despite all the negative news on sovereign debt," said Justin Urquhart Stewart, director at Seven Investment Management. "If the payrolls are positive, it could easily push the market even higher."

The European Central Bank has been energetic in its purchases of government bonds this week, ECB Governing Council member Ewald Nowotny said on Friday. [nFAE005845]

Trading, however, was subdued, especially in London, where plunging temperatures have made it difficult for some to get to work, and with some traders reluctant to take big positions ahead of the labour report.

Miners gained, as metals prices edged up, helped by a weaker dollar.

Kazakhmys and Vedanta rose 1.4 and 1.9 percent respectively.

Bank of Ireland , one of the banks at the centre of Ireland's debt crisis, was a major gainer, up 4.8 percent. Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX <.GDAXI> and France's CAC40 <.FCHI> rose between 0.2 and 0.7 percent.

The Thomson Reuters Peripheral Eurozone Countries Index <.TRXFLDPIPU> was up 0.7 percent.

DEUTSCHE BOERSE GAINS

Deutsche Boerse rose 1.8 percent on a report that the stock exchange operator is in talks to form alliances in Russia, which could include an equity swap. [ID:nLDE6B20HV]

STMicroelectronics rose 4.3 percent, as traders cited a rating upgrade on the stock by Exane to "outperform" from "neutral".

The euro zone's service sector economy pulled ahead in November thanks to strengthening German and French business, but debt-burdened Ireland and Spain continued to lag behind, business surveys showed on Friday.

The Markit Eurozone Services Purchasing Managers Index (PMI), which surveys more than 2,000 businesses ranging from banks to hotels, rose in November to 55.4 from 53.3 in October and beat an earlier flash estimate of 55.2. [ID:nSLA2NE6K0]

The U.S. payrolls data is due at 1330 GMT, with a Reuters poll putting the number of jobs added at 140,000, compared with 151,000 in October. The unemployment rate is expected to remain unchanged from October at 9.6 percent.

(Editing by Jane Merriman)

(brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters Messaging: brian.gorman.thomsonreuters.com@reuters.net))