* FTSEurofirst 300 up 0.1 percent
* Trading thin; DAX volume 5.2 pct of 90-day daily average
* Technology firms in demand; basic resources shares down
By Atul Prakash
LONDON, Dec 28 (Reuters) - European shares edged higher, led by healthcare and technology stocks, in holiday-thinned trade on Tuesday with London markets still closed.
At 0904 GMT, the FTSEurofirst 300 index of top European shares was up 0.1 percent at 1,138.79 points after falling 0.9 percent in the previous session.
Technology shares provided support, with a sector index up 0.4 percent and Ericsson rising 1 percent.
Alcatel Lucent rose 1.9 percent after it agreed to pay more than $137 million to settle U.S. charges it paid millions of dollars in bribes to foreign officials to win business in Latin America and Asia. "It will be a quiet session as many traders are on holidays, but there are a lot of things that are hanging over the market. People will get cautious because of China, the real estate situation in the United States and austerity plans in Europe," said Koen De Leus, strategist at KBC Securities, in Brussels.
"China is a good indicator of what commodities are going to do. I expect that in the coming months we could have a correction in commodities."
China's central bank raised interest rates on Saturday for the second time in just over two months as it stepped up its battle to rein in stubbornly high inflation.
ArcelorMittal, the world's largest steelmaker fell 0.3 percent, while steel tube-maker Tenaris was down 2.9 percent. Prices of London-listed mining shares were not available as the British market was closed for a holiday.
OILS GAIN
Energy shares were helped by crude oil, which rose above $91 a barrel to hover below a 26-month high hit in the previous session, helped by a weaker dollar and hopes that a major snow storm on the U.S. east coast would stoke demand for heating oil.
Total rose 0.4 percent, while oil-services company Bourbon gained 0.6 percent.
European shares remain relatively cheaper despite December's sharp rally, with the STOXX Europe 600 carrying a forward P/E ratio of 10.9, well below a 10-year average of 13.8, according to Thomson Reuters Datastream.
The FTSEurofirst 300, which hit a 27-month high last week, is up 6.7 percent in December and on track to record its best Christmas rally since 1999. It is up 8.9 percent on the year, while the broader STOXX Europe 600 is up 10 percent.
Across Europe, Germany's DAX was flat and trading volumes were 5.2 percent of its 90-day daily average. France's CAC 40 rose 0.2 percent, with volumes at 4.6 percent of its three-month daily average. (Editing by Dan Lalor)