LONDON, Aug 28 (Reuters) - European shares hit a 10-month closing high on Friday, on optimism for a global economic recovery, and with Nokia boosting the technology sector, which was also helped by results at U.S. bellwethers.
The FTSEurofirst 300 index of top European shares rose 1.1 percent to a provisional close of 978.85 points, its highest close since Oct. 7. Over the week, the index climbed 1.2 percent, its sixth gain out of the last seven weeks.
The European benchmark index is up more than 51 percent from its lifetime low of March 9, as investors have become more confident on the prospects of recovery.
"Things look good for the time being, but the higher we go the more we could be setting ourselves up for a disappointment," said Andy Lynch, fund manager at Schroders.
"The world economy is doing well, French and German GDP are positive, but that's not surprising given the amount of stimulus being pumped into the market. I have a concern about what happens when the sugar rush is withdrawn, though that may be a problem for 2010, rather than now."
Nokia rose 3.1 percent, taking its gain in the last three sessions, to 9.9 percent, with traders citing positive momentum following the announcement of its first Linux phone to compete with Apple's iPhone.
STMicroelectronics rose 11.3 percent after a bullish note on the chipmaker from Banc of America-Merrill Lynch, which raised its price target for the stock by 17 percent to 7 euros, and retained its "buy" rating.
The sector was further boosted by upbeat statements from U.S. bellwethers. Intel raised its third-quarter outlook and results at Dell were ahead of forecasts.
Macroeconomic news was also mostly positive. U.S. consumer spending rose as expected in July, lifted by the government's "cash-for-clunkers" programme that fuelled demand for autos. The Commerce Department said spending rose 0.2 percent after rising by a revised 0.6 percent in June, previously reported as a 0.4 percent gain. (Reporting by Brian Gorman)