* FTSEurofirst 300 jumps 1.4 percent; targets 1-year high
* Banks advance; sector index up 170 percent from March lows
* ASML results boost tech stocks; miners in demand
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By Atul Prakash
LONDON, Oct 14 (Reuters) - European shares rose close to a one-year high on Wednesday, with earnings from Intel and ASML soothing investors who had sold riskier assets, such as equities, in the prior session.
The FTSEurofirst 300 index of top European shares rose 1.4 percent to 1,009.17 points by 0759 GMT, having fallen 1 percent on Tuesday.
A move above 1,013.63 points would be a one-year high for the index, which is up 21 percent this year and 56 percent higher since hitting a record low in early March.
The VDAX-NEW volatility index fell 2 percent to hover near this week's 13-month lows. The lower the index, which is based on buy and sell options on Frankfurt's top-30 stocks, the higher is investors' appetite for risky assets.
Financial shares were among the top gainers, with the DJ Stoxx banking index rising 1.8 percent. The sector has been the second best performer this year, surging 170 percent since hitting a low in early March.
Standard Chartered, HSBC, Barclays, Lloyds, Royal Bank of Scotland, BNP Paribas, Societe Generale and Credit Agricole gained 0.5-2.9 percent.
"Today could be one of those watershed moments for the markets," said John Murphy, analyst at ODL Securities.
"Whilst we have rallied strongly since the March lows, the release of Q3 earnings from some of the world's largest financial institutions over the next 48 hours could well dictate confidence, and indeed direction, for the rest of 2009."
Markets await results from JPMorgan Chase later in the day and from Citigroup and Goldman Sachs on Thursday.
After the closing bell on Wall Street on Tuesday, Intel posted a quarterly outlook and results that were better than expected, while Dutch chip equipment maker ASML swung to a third-quarter net profit of 20 million euros ($30 million) as orders picked up after nine months of falls.
Tech shares were in demand, with DJ STOXX technology index rising 1.9 percent. ASML shares rose 3.2 percent, while Infineon , Nokia, STMicroelectronics and ARM climbed 1.6-4.2 percent.
CRUDE POWERS ENERGY SHARES
Energy shares gained ground after crude oil surged for a fifth day to a 2009 high above $75 a barrel as the dollar hit a 14-month low and surprisingly strong China trade data underscored a recovery in the world's second-largest oil user.
BP, Royal Dutch Shell, BG Group, Tullow Oil, Repsol, Total and StatoilHydro added 1.3-2.4 percent.
Miners got strength from higher metals prices. BHP Billiton , Anglo American, Antofagasta, Xstrata and Eurasian Natural Resources rose 1.8-3.7 percent.
Global miner Rio Tinto was up 3.7 percent as it raised its production guidance for iron ore this year by 5-7.5 percent to 210-215 million tonnes, after reporting a 12 percent jump in third-quarter output.
"Traders will also be looking forward to the U.S. retail sales figures especially as there has been much debate recently whether consumer demand is returning or whether government stimulus is the cause of better earnings," said Arifa Sheikh-Usmani, equity trader at Spreadex,
"Either way, the momentum is still very much with the bulls this morning so it would take a brave trader to go against the tide today."
September U.S. retail sales data was due at 1230 GMT. Economists in a Reuters survey forecast a 2.1 percent fall, compared with a 2.7 percent rise in August.
Across Europe, Britain's FTSE 100 index, Germany's DAX and France's CAC 40 rose 1.2-1.3 percent. (Editing by Dan Lalor)