* FTSEurofirst 300 up 0.3 percent, up for 5th straight day
* Euro STOXX 50 breaks above key trend line
* Ericsson, Renault surge on strong earnings
* Investors trim exposure to risky assets ahead of Fed
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By Blaise Robinson
PARIS, April 27 (Reuters) - European stocks inched higher in early trade on Wednesday, gaining ground for the fifth straight session as investors focused on strong results from bellwethers such as Ericsson and Renault.
Gains, however, were limited as the market awaited clues from the U.S. Federal Reserve on its exit strategy, with investors trimming their exposure to risky assets such as mining stocks. BNP Billiton was down 1.3 percent and Xstrata down 0.7 percent.
At 0923 GMT, the FTSEurofirst 300 index of top European shares was up 0.3 percent at 1,149.38.
The euro zone's blue chip Euro STOXX 50 index rose 0.5 percent to 2,969.18, convincingly breaking above a key resistance level at around 2,961.4, which represents a downward trendline formed by peaks hit in mid-February and early April, a bullish signal.
Despite the recent rally, the benchmark index is still down 3.5 percent from its peak of mid-February.
"We're seeing a flight to quality this week, with falling bond yields in the United States, Germany and France. Investors clearly want better returns and a protection against inflation, but they still don't really trust equities in general," said Marc Gilson, head of Paris-based fund management firm Fival.
Shares in telecom gear maker Ericsson surged 9.5 percent following stellar quarterly results, while Renault rose 3.8 percent after the French carmaker posted better-than-expected sales.
UK lender Barclays dropped 4.8 percent after the bank's first-quarter profits fall on the back of lower income at its key investment banking unit.
Around Europe, UK's FTSE 100 index was down 0.1 percent, Germany's DAX index up 0.6 percent, and France's CAC 40 up 0.4 percent.
The Fed is expected to stick to its plan to complete its $600 billion bond-buying program in June, but questions about the exit strategy will likely arise when Fed Chairman Ben Bernanke holds a news conference during which he may give hints on the central bank's thinking on the matter.
"The end of QE2 is already priced in, so unless we get a bombshell, the impact on the market should be muted. If the Fed announces an extension of the programme, the market reaction might be negative because it will be seen as a sign that the economy isn't back on track," said Jacques Henry, analyst at Louis Capital Markets in Paris. (Reporting by Blaise Robinson; Editing by Hans Peters)