European shares rise for 7th day; retailers gain

* FTSEurofirst 300 rises 0.5 percent

* Morrison leads retailers up

* Financials, miners gain

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

By Brian Gorman

LONDON, July 21 (Reuters) - European shares advanced in early trade on Tuesday, rising for a seventh straight day, with supermarket group Morrison leading retailers higher on an upbeat trading statement.

At 0835 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.5 percent at 885.67 points.

The index's seventh day of gains puts it on course for its longest winning streak since August 2007, and it is up more than 37 percent from its lifetime low of March 9, as investors have become more confident on the prospects of recovery.

British supermarket group Morrison soared 8.5 percent, and led retailers higher, after saying full-year results would beat expectations. [ID:nLL250145]

Tesco rose 2 percent and Sainsbury was up 2.4 percent.

"It's looking positive. Corporate earnings have shown that top lines are not so good, but the bottom line is better, as they have cut costs," said Justin Urquhart-Stewart, investment director at Seven Investment Management, in London.

"But you can only do that so far. In the broader picture, you wonder where the growth is coming from."

World number two truck maker Volvo rose 3.8 percent despite posting a deeper than expected second-quarter operating loss and stood by its forecast of sharp declines in its main markets this year. [ID:nLL382172]

Banks to rise included Deutsche Bank , HSBC and Societe Generale , up between 0.4 and 0.6 percent.

Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX <.GDAXI> and France's CAC-40 <.FCHI> were up between 0.5 and 0.6 percent.

INSURERS GAIN

Insurers continued their recent recovery, with France's AXA up 1.8 percent and Britain's Aviva and Prudential up 1.6 and 1.8 percent respectively.

Miners were mostly higher, though copper prices slipped back from nine-month highs. Anglo American , Antofagasta , Rio Tinto and Xstrata were up between 1.3 and 2.2 percent.

Japan's Nikkei 225 <.N225> rose 2.7 percent, its highest close in two weeks.

U.S. stocks jumped on Monday, driving the S&P 500 <.SPX> to an eight-month closing high, after CIT was thrown a lifeline to avoid bankruptcy, and investors bet corporate America would log another strong set of earnings this week.

Federal Reserve Chairman Ben Bernanke reassured that loose monetary policy with interest rates near zero would be around for a while longer.

Bernanke said the Fed's accommodative policy would be warranted for an extended period even while laying out a roadmap for how the Fed could mop up the massive reserves injected into the financial system.

Later in the session, investors' attention will turn to corporate earnings in the United States, including those from Apple , Du Pont < and State Street . (Editing by Mike Nesbit)