* FTSEurofirst 300 closes 0.1 percent higher
* BNP Paribas leads banks higher
* Vodafone falls after strong run; ICAP says "sell"
By Brian Gorman
LONDON, Sept 29 (Reuters) - European shares closed marginally higher on Tuesday with banks rising after BNP Paribas raised capital to shake off government influence, but with mixed economic data from the United States.
The pan-European FTSEurofirst 300 index rose 0.1 percent to close at 1,002.25 points.
The benchmark index is up more than 55 percent from its lifetime low of March 9, as investors have become more confident on the prospects of economic recovery. It has risen 17.9 percent this quarter, on track to post its best quarterly rise in almost a decade.
"We remain cautious based on our view that the rally has been driven by government stimulus," said Jeremy Batstone-Carr, strategist at Charles Stanley.
"I'm not convinced that the market has the ability to maintain these kinds of levels. The data is beginning to roll over. Valuation metrics indicate that there is scope for a pronounced pullback. We've come too far, too fast."
Financials were standout gainers, with BNP Paribas up 2.4 percent as investors welcomed its move to launch a 4.3 billion euro ($6.3 billion) capital increase and pay back French state aid.
Barclays, Societe Generale and UniCredit rose between 1.2 and 2.2 percent.
The DJ Stoxx European banking index has rallied 174 percent from a March low. A number of banks are aiming to repay governments for their financial support during the credit crisis, as they want to avoid government restrictions on lending, remuneration and dividends.
On the downside, miners were out of favour as metal prices eased. BHP Billiton, Rio Tinto, Anglo American, Lonmin and Xstrata were down 0.6-3.2 percent.
Across Europe, Britain's FTSE 100 slipped 0.1 percent, Germany's DAX lost 0.4 percent and France's CAC 40 eased 0.3 percent.
U.S DATA MIXED
U.S. single-family home prices in July rose from the previous month, surpassing forecasts and bolstering the case for housing market stability after a three-year plunge. The S&P/Case-Shiller composite index of 20 metropolitan areas rose 1.6 percent in July from June, more than triple the estimate of a 0.5 percent rise found in a Reuters poll.
But U.S. consumer confidence fell unexpectedly as the worst job prospects in 26 years fueled worries over personal finances. The Conference Board, an industry group, said its index of consumer attitudes fell to 53.1 in September from a revised 54.5 in August.
Wall Street was lower around the time European bourses were closing. The Dow Jones, S&P 500 and Nasdaq Composite were down between 0.3 and 0.6 percent.
Back in Europe, euro zone economic sentiment improved more than expected in September thanks to a sharp rise in optimism among consumers.
Among individual shares, life insurer Legal & General closed 4.8 percent higher, building on a 5.2 percent rise on Monday, on more bid talk following a weekend press report that it has prepared a defence document against a potential bid from takeover vehicle Resolution.
Also on the upside, Compass Group advanced 3.6 percent after the world's largest caterer said it expected to grow full-year earnings per share by 14 percent on new business wins, cost cuts and a weak British pound.
Vodafone, the world's largest mobile operator by revenue, fell 2 percent after ICAP initiated coverage with a "sell" recommendation. The broker said the company's revenue performance in Europe "is unlikely to show a material turnaround in the coming quarters".
The decline came despite Vodafone finally sealing a deal to sell Apple's iPhone in Britain from 2010
Vodafone has gained more than 20 percent in two months.
German industrial conglomerate Siemens fell 1.7 percent after saying its order intake fell more than a fifth in its fiscal fourth quarter through September, indicating that recovery is not yet underway.
Marks & Spencer rose 1.4 percent, ahead of a trading statement on Wednesday. (Additional reporting by Dominic Lau, editing by Rupert Winchester)