Pharmas push Europe stocks higher; D.Bank weighs

* FTSEurofirst 300 shares gain 0.4 percent

* Pharma stocks add most points to index

* Deutsche Bank falls after Q2 results, but banks gain

* For up-to-the-minute market news, click on [STXNEWS/EU]

By Christoph Steitz

FRANKFURT, July 28 (Reuters) - European shares rose on Tuesday, boosted by drugmakers, but Deutsche Bank fell after reporting a significant rise in loan provisions despite better-than-expected quarterly net profit.

By 0855 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.2 percent at 913.71 points, after reaching its highest close since November on Monday, boosted by U.S. data pointing to economic recovery and expectations that the ongoing earnings season will continue to be positive.

The index has gained about 42 percent since reaching a lifetime low of 645.50 points in early March.

"There is this sentiment in the market about the glass being half full -- but there is a big gap between the euphoria and reality, a bit like a supermodel without makeup," said Commerzbank Chief Strategist Hans-Juergen Delp.

"Earnings expectations have been lowered so much that they are easily exceeded," he added.

Pharmaceutical stocks added most points to the index and the DJ STOXX European healthcare index <.SXDP> was the second-biggest sectoral leader, up 0.8 percent.

Sanofi-Aventis rose 1.9 percent, after Morgan Stanley upgraded the stock to "overweight" from "equal weight".

Other stock movers included BP , which fell 1.2 percent. The oil major said it had increased its cost reduction targets for 2009 by 50 percent to $3 billion, as it reported a halving in second quarter profits. [ID:nLR694861]

DEUTSCHE BANK DROPS

EADS shares gained 5.7 percent, after the European aerospace group reported a 23 percent drop in first-half profit, but kept its basic outlook. [ID:nLS281033]

On the downside, Deutsche Bank, Germany's biggest bank, fell 4.3 after posting a consensus-busting second-quarter net profit, but said provisions for credit losses rose to 1 billion euros in the second quarter from 135 million euros a year earlier. [ID:nLS438105]

"Due to the economic crisis the companies are faced with low expectations. Low enough, that most companies are able to exceed the forecasts. Investment banks -- irony of fate -- are already faced with high expectations, which are not easy to reach," said Roger Peeters, strategist at Close Brothers Seydler. "Deutsche Bank, which posted figures today, is one of the examples."

However, the DJ STOXX European Banking Index <.SX7P> rose 0.8 percent, with Banco Santander and Commerzbank up 1.5 and 1.4 percent, respectively.

Dutch supermarket group Ahold fell 4.5 percent, after its second quarter sales lagged forecasts. [ID:nLS243711]

Around Europe, UK's FTSE 100 index <.FTSE> gained 0.4 percent, Germany's DAX index <.GDAXI> rose 0.8 percent and France's CAC 40 <.FCHI> added 0.7 percent.

(Editing by Marie Maitre)