* FTSEurofirst 300 up 0.7 percent after one-week sell-off
* Forecast-beating results offset lingering macro fears
* Volatility falls from 7-month high hit on Wednesday
By Blaise Robinson
PARIS, Aug 26 (Reuters) - European stocks were up around midday on Thursday, halting a one-week drop and tracking a late rally on Wall Street, as a batch of strong corporate results offset investors' worries over economic outlook.
L'Oreal surged 6.4 percent after the cosmetics major posted better-than-expected results, lifted by cost cuts and an upturn in consumer spending, while Credit Agricole gained 2.8 percent after reporting forecast-beating profits and revenue.
By 1044 GMT, the FTSEurofirst 300 index of top European shares was up 0.7 percent at 1,018.44 points. The benchmark index had lost nearly 4 percent in the week, hitting a five-week low on Wednesday, hurt by a raft of grim U.S. macro data that fuelled fears of a double-dip recession.
The Euro STOXX 50 was up 0.6 percent at 2,602.94 points. The euro zone's blue chip index managed to close off the session's low on Wednesday and just above a key retracement level, the 23.6 percent Fibonacci retracement from the index's fall from an April high to a May low, a positive sign in the short term.
"We're still yo-yoing in a range in this very technical market where indices move back and forth from support levels to resistance levels," said Jacques Henry, analyst at Louis Capital Markets, in Paris.
"The big focus remains on the macro, and on this front the newsflow is quite negative so I don't see a big rebound in the coming days. There is just no conviction."
Thursday's rise came on the heels of a late rally on Wall Street, where bargain hunters started to scoop up shares after major indices ran into strong technical support following a sharp four-day losing streak.
But trading volumes remained anaemic in Europe on Thursday, signalling a lack of real appetite for stocks despite the day's tentative rally.
"Despite the positive signal from the close on Wall Street, it won't be enough to reverse the negative bias. We still see indexes revisiting the year's lows soon," said Alexandre Le Drogoff, technical analyst at Aurel BGC.
The VDAX-NEW volatility index, one of Europe's main barometers of investor anxiety, inched lower on Thursday after hitting a seven-week high in the previous session.
The higher the volatility index, based on sell- and buy-options on Frankfurt's top-30 stocks, the lower investors' appetite is for risky assets such as equities.
Investors found some comfort in strong earnings on Thursday, with Accor surging 4.7 percent after the French hotel group posted a first-half operating profit that more than doubled, lifted by cost-cutting efforts and improved demand for hotel rooms.
Mining group Kazakhmys rose 3.3 percent after reporting strong results, providing support to mining shares.
The market's attention will turn to U.S. data later in the session, with weekly jobless claims due at 1230 GMT. Economists in a Reuters survey forecast a total of 490,000 new filings compared with 500,000 in the prior week.
"U.S. jobless claims are likely to be disappointing," said David Buik, partner at BGC Partners, in London.
"Companies have been reporting reasonable results but whether a rally can be sustained is to be seen. There is nothing to say the bad news is all over."
(Additional reporting by Joanne Frearson in London; Editing by Sharon Lindores)