* FTSEurofirst 300 rises 0.3 pct
* Banks gain as Greece worries recede
* RWE lower on capital raising worries
By Brian Gorman
LONDON, July 8 (Reuters) - European shares rose on Friday, on track for a ninth gain in 10 sessions, boosted by Wall Street and Asia moving higher, and ahead of key U.S. labour data that may confirm the strength of the recovery in the world's biggest economy.
At 0842 GMT, the FTSEurofirst 300 index of top European shares was up 0.3 percent at 1,126.12 points, after rising 0.4 percent in the previous session to its highest close in five weeks, buoyed by a report showing strong U.S. job private sector jobs creation.
Stocks rose virtually across the board, albeit modestly, with the heavyweight banking sector among the gainers as worries about Greece's debt crisis receded. The STOXX Europe 600 Banking Index rose 0.1 percent, though it is still down 6 percent in 2011.
"It's all about the non-farm payrolls. The market will be expecting a higher number after the ADP report," Philip Isherwood, European equities strategist at Evolution Securities, said.
"It seems to me the soft patch that people thought would turn into recession is overstated."
A Reuters survey conducted last week found that economists were looking for an increase of 90,000 nonfarm jobs after May's meagre 54,000 gain. But economists now believe employment probably rose anywhere between 125,000 and 175,000. .
The data is due at 1230 GMT.
The pan-European index is in the middle of a range defined by the 2011 high it hit in mid-February, 1,190.51 points, and the low of mid-March, 1066.62.
Isherwood said it was more likely to break out of the range on the upside.
He said the forthcoming second-quarter earnings season would show "top line beats as well as earnings beats".
The pan-European index has gained 5 percent in the last two weeks, as worries about Greece's debt crisis have abated, and U.S. economic indicators have picked up. But strategists say shares are still cheap.
Equity valuations on Thomson Reuters Datastream showed the STOXX Europe 600 carrying a one-year forward price-to-earnings of about 10 against a 10-year average of 13.4.
After a flat first half for European shares, with returns of just 2 percent including dividends, Citigroup believes the second half will be better.
"We target double-digit returns by end-2011," Citi strategists said in a note, saying that earnings were "OK" and valuations were "attractive".
Citi economists forecast an "uneven global recovery" and "reducing macro uncertainty" in the second half.
Among individual shares, German utility RWE fell 2.8 percent on news that the company is considering issuing new capital to maintain its credit rating.
The IMF executive board on Friday is expected to approve the disbursement of just over 3 billion euros for Greece, in time to help the country pay debts falling due this month. (Editing by Hans-Juergen Peters)
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