* FTSEurofirst 300 index gains 1.1 percent
* Banks, commodity, auto shares rise ahead of key results
* Q-Cells tumbles on sales outlook
By Simon Falush
LONDON, July 14 (Reuters) - Strength in banks powered gains in European equities which rallied for a second day on Tuesday, ahead of results from U.S. bellwethers Goldman Sachs and Intel.
By 1023 GMT, the FTSEurofirst 300 index of top European shares were up 1.1 percent at 839.02 points after surging 2 percent in the previous session.
The index, which slumped 45 percent in 2008, is up about 30 percent since falling to a lifetime low in early March.
Financial shares were the biggest drivers of growth, with Deutsche Bank, Commerzbank, HSBC, Barclays, Royal Bank of Scotland, Bank of Ireland and BNP Paribas rising between 1.9 and 7.9 percent.
Analysts said banks were being boosted on anticipation that Goldman Sachs's second-quarter results would shine.
"All eyes are in bank results across the pond, and there are rumours that Goldman will report strong profits, which is leading to a lot of bidding activity for banks," said Robert Quinn, European strategist at Standard & Poor's equity research.
As well as Goldman Sachs, Intel and Johnson & Johnson will report later in the session, while other companies announcing results this week include Bank of America Corp, JPMorgan, Citigroup and General Electric.
Low trading volumes and uncertainty on the corporate and economic outlook mean that these results are likely to drive relatively sharp equity movements, analysts said.
"We could have continuing volatility. It is the lowest period of activity in the year apart from the Christmas period, so volumes should be low. You might see some sharp moves," said Jonathan Lawlor, head of European research at Fox-Pitt, Kelton.
Autos stocks were also buoyed by the slightly more optimistic stance investors were taking on the economic outlook. Renault, Peugeot, and BMW added between 3.2 and 4.8 percent.
European equities briefly pared gains after ZEW data showed German analyst and investor sentiment fell in July for the first time since October 2008, but investors soon shrugged off the weaker-than-expected data.
In the United Kingdom, the macroeconomic data was more positive. Surveys showed British retail sales rose in June and house prices fell at their slowest rate in two years, in further signs the economy may be bottoming out after the worst downturn in decades.
MINERS, ENERGY GAIN
Miners were bolstered by higher metals prices. BHP Billiton, Anglo American, Antofagasta, Rio Tinto, Xstrata and Eurasian Natural Resources rose between 2.6 and 4.7 percent.
Energy stocks tracked crude prices, which reversed the previous session's losses and rose above $60 a barrel on improved sentiment.
BP, BG Group, Tullow Oil, Repsol and StatoilHydro added between 0.6 and 3.2 percent.
While the tone of the market was broadly positive, there were some significant losers.
Q-Cells, the world's biggest maker of solar cells, slipped 13.2 percent after it withdrew its full-year sales outlook, expecting a substantial operating loss in the second quarter as market environment remained dire.
Germany's Software AG fell 3.9 percent after it said it would buy IT consultancy group IDS Scheer for almost 500 million euros ($696 million) in what would be the first major corporate takeover in Germany this year. IDS shares surged 38 percent.
Mobile phone operator Vodafone was the UK's largest blue-chip faller, down 2.2 percent after a UBS note which downgraded it to "neutral" from "buy"
Across Europe, the FTSE 100 index, Germany's DAX and France's CAC 40 were up 0.5 and 0.8 percent. (Additional reporting by Atul Prakash; editing by Karen Foster)