Mixed U.S. data limits gains for European shares

* FTSEurofirst 300 closes 0.7 pct higher

* BP, Axa up on broker upgrades

* Indexes pare gains after mixed U.S. economic data

By Brian Gorman

LONDON, May 19 (Reuters) - European shares rose in a broad market rally on Thursday but ended off their highs after mixed U.S. economic data, and some strategists said equities might be stuck in a range until the macro picture improves.

The FTSEurofirst 300 <.FTEU3> index of top European shares rose 0.7 percent to close at 1,138.63 points, having been as high as 1,144.58, with volumes at 89 percent of the 90-day average.

The index remains in the range defined by the 2011 high it hit in mid-February and the low in mid-March.

The number of Americans filing new claims for jobless benefits fell last week, but other data on home sales and regional factory activity suggested the economy remained on a moderate growth path. [ID:nN19134058]

"We are a bit rangebound. Some of that macro uncertainty needs to be less visible, if we're going to break out on the upside," said Bill Dinning, head of investment strategy at Aegon Asset Management in Edinburgh, which has 48.8 billion pounds under management.

The energy sector <.SXEP> rose 1.1 percent, gaining from a surge in crude prices late on Wednesday after U.S. stockpiles fell. BP rose 1.6 percent, helped by a Bank of America Merrill Lynch upgrade to "buy".

Investors, however, stayed cautious in chasing prices higher on lingering concerns about Greece's debt crisis. Eurogroup's president Jean-Claude Juncker said he remained opposed to a total restructuring of Greek sovereign debt.

Across Europe, Britain's FTSE 100 <.FTSE> ended the day 0.6 percent higher, Germany's DAX <.GDAXI> rose 0.8 percent and France's CAC40 <.FCHI> rose 1.3 percent.

Greek banks <.FTATBNK> fell 0.5 percent, with Greece's benchmark <.ATG> down 0.4 percent.

AXA, FINANCIALS GAIN

Heavyweight French insurer Axa gained 2.5 percent, boosted by an upgrade to "outperform" from "hold" by Daiwa Capital Markets, which cited "the shift towards more profitable new business in life and savings as a positive development".

Banks to gain included BNP Paribas and Barclays , up 2.5 and 1.8 percent respectively.

Commodities trader Glencore made a steady market debut on Thursday, with shares trading just above the widely expected launch price of 530 pence, giving it solid currency for potential acquisitions. It was looking to raise up to $11 billion [ID:nLDE74I062]

However, miners slipped slightly, with the sector index <.SXPP> down 0.3 percent, as copper gave back some of the strong gains it made on Wednesday.

Most strategists say the index is more likely to break out of the range on the upside than the downside.

"If you look at the world from a company point of view, earnings or margins, it looks pretty healthy, with decent valuations, not overvalued. Relative to government bonds, equities are still attractive," Dinning said.

Equity valuations on Thomson Reuters Datastream showed the STOXX Europe 600 <.STOXX> carrying a one-year forward price-to-earnings of about 10.8 against a 10-year average of 13.5.

"I see the stock market's outlook broadly positive in the near term. An exposure to industrials and natural gas stocks would be our favourite play," said Richard Greenwood, fund manager, Bedlam Asset Management, which manages $700 million.

Among other individual stocks, Swiss luxury goods group Richemont fell 1.5 percent as its annual profits and margins fell short of expectations due to higher costs. [ID:nLDE74G29O]

Danish jewellery maker Pandora plunged 21.6 percent after the company's first-quarter results missed analysts' forecasts. [ID:nLDE74H0D5]

With some 89 percent of companies in the Stoxx Europe 600 due to report earnings in the current season having done so, 55 percent of that proportion have beaten or met forecasts. (Additional reporting by Atul Prakash; Editing by Jon Loades-Carter)