* FTSEurofirst 300 index up 0.4
* LVMH, Burberry jump after results beat forecasts
* Investors await Goldman Sachs result
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By Joanne Frearson
LONDON, April 19 (Reuters) - European shares rallied on Tuesday as fund managers said strong earnings would support markets in the short term, overshadowing economic risks, with LVMH and Burberry results' beating forecasts.
By 0837 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.4 percent at 1,116.73 points recovering from a sell-off in the previous session when Standard & Poor revised its credit outlook on the United States to negative.
"We are going into earnings season and we think in the near term it is reasonably supportive," James Buckley, head of European equities at Baring Asset Management said, which has 30 billion pounds ($48.68 billion) of assets under management.
"We favour stocks which are exposed to the global economy and continue to favour luxury good companies. LVMH, which we own, had good results this morning."
Luxury group companies were in demand, with the STOXX Europe 600 Personal and Household Goods index index up 1.5 percent.
LVMH, the world's biggest luxury group, gained 3.9 percent after its first-quarter sales also beat analysts' expectations, while British firm Burberry jumped 7.3 percent after fourth-quarter underlying sales beat forecasts. The industrial sector was also in demand on strong earnings news.
Manufacturing bellwether SKF, the world's top bearings maker, jumped 5.1 percent after it posted forecast beating first-quarter earnings, while Zodiac Aerospace gained 3.6 percent after it raised its full-year margin target. Fund managers said the sell-off after S&P revision of the United States had been overdone, with Wall Street ending although down, off its lows on Monday.
"The market should be supported at these levels despite the global macro economic concerns. The U.S. market closed well off its lows, so the response in the state was fairly sanguine," Buckley said.
GOLDMAN EYED
However, traders said investors could turn cautious later in the session ahead of results in the United States from banking heavyweight Goldman Sachs.
"We have Goldman Sachs later and there could be some caution before that, one negative comment from anyone and we could be back down." Simon Clark, trader at ETX Capital said.
However, not all companies had strong earnings news. Tesco shares slipped 0.8 percent after it announced a larger-than-expected loss at U.S. chain Fresh & Easy and its new boss Phil Clarke said it must do better in a tough UK market.
In the background, investor concerns still remained about the euro zone peripheral countries, with a sale of Greek short-term debt expected to test the euro zone markets.
On Monday, yields rose at a Spanish bill tender on growing talk of a Greek debt restructure, while a Greek newspaper on Tuesday cited an EU source as saying the country has accepted the fact that it cannot avoid restructuring its debt.
Spain's IBEX 35 fell 0.2 percent, Portugal's PSI 20 gained 0.5 percent, Italy's benchmark was up 0.1 percent and the Athens General rose 0.4 percent.
Across Europe, the FTSE 100 index was 0.5 percent higher, Germany's DAX was up 0.3 percent and France's CAC 40 rose 0.4 percent. (Reporting by Joanne Frearson; Editing by Louise Heavens) ($1=.6163 Pound)