* FTSEurofirst 300 up 1 percent
* Solvay jumps after first-quarter results
* Miners gain on China trade data
* For up-to-the minute market news, click on
By Joanne Frearson
LONDON, May 10 (Reuters) - European shares were higher at midday on Tuesday after concerns about the Greek debt situation eased, boosting bank stocks, with strong Chinese trade data lifting miners.
Traders said while the market had short-term relief from a Dow Jones report of a possible 60 billion euros ($86 billion) aid package to resolve Greece's debt problems, problems still remained.
The report was denied by Greece and ECB policymakers said a Greek debt restructuring would have dire consequences, favouring giving Greece more time to repay aid rather than issuing new loans.
By 1145 GMT, the pan-European FTSEurofirst 300 index of top shares was up 1 percent at 1,151.18 points after peripheral EU debt fears dragged shares lower in the previous session.
Looking at the technical picture, the euro zone's blue-chip Euro STOXX 50 rose 1.4 percent to 2,942.87 points, breaking above its 50-day moving average after closing below it on Monday -- a positive signal for equities.
"European markets are trading on a firm note today as the panic surrounding the latest Greek saga is receding," said Lex van Dam, hedge fund manager at Hampstead Capital, which has $500 million of assets under management.
Banking stocks featured among the best performers. In core Europe, BNP Paribas, Societe Generale and Commerzbank, which are among the biggest holders of Greek bonds, rose 2.2-2.5 percent.
The Greek banking stock index, which has been hit by worries about sovereign debt, was up 4.2 percent following sharp falls in the previous session.
"Financials have been short-term oversold although they still worry me long term. I would not take massive sector bets here but stay diversified," van Dam said. "Greek banks are very firm today on the basis that they don't have to take big write-offs on the Greek debt that they have on their books."
Peripheral markets, which have been hit by worries that they too may have further debt problems, rose, with the Thomson Reuters peripherals euro zone index up 1.1 percent.
Investor appetite for riskier assets increased, with the Euro STOXX 50 volatility index -- Europe's main barometer of anxiety -- down 4.8 percent after surging on Monday. The lower the volatility index, the higher investor appetite for risky assets such as stocks.
MINERS GAIN
European markets were also buoyed by mining stocks on demand hopes after China posted a bigger trade surplus than expected, highlighting strength in the economy.
The STOXX Europe 600 basic resources index rose 1.6 percent, with Rio Tinto, Antofagasta and Xstrata gaining 2.1-2.5 percent.
"Markets have been reluctant to give up a lot of ground because there is confidence in a global recovery and confidence that it is turning into a sustainable expansion even if there is some loss of momentum," Brewin Dolphin chief strategist Mike Lenhoff said.
Among individual stocks, Belgian chemicals group Solvay rose after first-quarter operating profit beat estimates.
Across Europe, the FTSE 100 index was up 1.3 percent, Germany's DAX gained 1.5 percent and France's CAC 40 was 1.5 percent higher. (Additional reporting by Harpreet Bhal; Editing by Dan Lalor)