LONDON, Oct 27 (Reuters) - European shares rose in early trade on Tuesday, with energy stocks taking the lead after oil heavyweight BP's third-quarter results beat forecasts.
By 0812 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.4 percent at 1,000.47 points.
"BP was better than expected, which is the reason why the market is up," said Bernard McAlinden, strategist at NCB Stockbrokers.
"The S&P/Case-Shiller Home Price Index for August is the most important thing today. There has been tentative signs that it has bottomed, if it is up again then that would be positive," McAlinden said.
Energy stocks added the most points to the index, with BP gaining 4.7 percent. The company beat third-quarter earnings forecasts by a big margin as its cost-cutting programme proved more successful than expected, prompting the British oil major to increase its target for savings for the year. BG Group, Royal Dutch Shell and Total were 0.6 to 1.5 percent higher.
Industrial engineers were in demand. Vestas Wind soared 10 percent after it reported a bigger-than-expected rise in operating profits for the third quarter.
Later in the session, investors will eye the U.S. Case/Shiller Home Price Index for August at 1300 GMT and U.S. Consumer Confidence figures, due at 1400 GMT. (Reporting by Joanne Frearson)