* FTSEurofirst 300 up 0.1 percent
* Banks gain ahead of results from Goldman Sachs
* SKF surges as results beat forecasts
By Brian Gorman
LONDON, Oct 19 (Reuters) - European shares edged up on Tuesday, with industrials gaining after forecast-beating results at bearings maker SKF and financials higher ahead of results from U.S. peers.
But weaker oil and mining shares capped gains for key indexes.
At 1025 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.1 percent at 1,089.70 points, after hitting its highest close in nearly six months on Monday.
The benchmark is up more nearly 69 percent from a lifetime low of March, 2009, with fiscal stimulus having helped several major economies emerge from recession.
However, it is up barely 4 percent in 2010, partly due to worries about high debt levels among the euro zone's peripheral countries, notably Greece. SKF surged more than 10 percent as the world's biggest maker of bearings raised its financial targets after unveiling forecast-beating quarterly earnings and a $1 billion U.S. acquisition.
The results also lifted the share prices for Atlas Copco, Sandvik and Alfa Laval, which rose between 1.6 and 3.7 percent.
"It was a good update from SKF. It surprised people," said Colin McLean, managing director at fund manager SVM in Edinburgh.
"Industrials and financials are strong and there's money coming into the market. Sentiment is better among the Greek banks, with EFG Eurobank being able to use some of the Greek bonds as collateral."
EFG rose 5.3 percent and the Greek banking sector index was up 2.8 percent.
Heavyweight financials were also among the biggest gainers as investors awaited results from U.S. peers including Goldman Sachs and Bank of America for evidence on the pace of recovery in the sector.
Banco Santander, Credit Suisse, Societe Generale and UBS rose between 2.3 and 2.6 percent.
"Investors will accept the slowing in the rate of earnings recovery in the financials. I don't think there should be a huge surprise if we see some impact on the top line as long as margins are holding up," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.
Energy companies fell, tracking falls in crude prices after the dollar rebounded on profit taking and after Washington stressed its desire for a strong dollar.
Total, Repsol and Statoil fell between 0.9 and 1.7 percent. Miners to fall included Xstrata, down 1.8 percent, as metals prices slipped.
Growing speculation in recent weeks of further quantitative easing measures in the U.S. have put pressure on the dollar, resulting in a boost to commodity prices and commodity-related stocks, with mining shares up more than 5 percent this month.
TECHS FALL
Technology firms in Europe were also lower, after U.S. peer Apple posted disappointing sales of its iPad tablet computer and IBM reported a fall in new technology services deals.
ARM Holdings and Infineon fell 2.6 and 1.3 percent respectively.
In macroeconomics, German analyst and investor sentiment deteriorated by less than forecast in October, a closely-watched survey showed. The Mannheim-based ZEW economic think tank's monthly poll of economic sentiment fell to -7.2 in October from a reading of -4.3 in September. A reading of -8.0 was forecast. (Additional reporting by Harpreet Bhal; Editing by Greg Mahlich)