* FTSEurofirst 300 closes 0.2 pct higher
* Automakers feature among top gainers; banks fall
By Brian Gorman
LONDON, July 4 (Reuters) - LONDON, July 4 (Reuters) - European shares extended a winning run to six sessions on Monday, as worries about Greece receded further, though strategists said wider deficit issues might limit further gains for equities.
The FTSEurofirst 300 index of top European shares rose 0.2 percent to 1,121.58 points, the highest close in a month.
The index, which surged 4.2 percent last week, is in the middle of a range defined by its 2011 high of mid-February and its low of mid-March.
Volume was low, at 56.6 percent of the index's 90-day average, with no direction provided by Wall Street, closed for the Independence Day holiday.
Volkswagen AG
"Equity markets will go higher. The Greek debt restructuring is obviously on hold," said Bob Parker, senior adviser at Credit Suisse.
"I don't think people are taking seriously the statement from S&P, that there is a selective default. On corporate earnings, people are being a little bit too pessimistic now."
Credit rating agency S&P said Greece would likely be in default if it follows a debt rollover plan pushed by French banks as it would involve losses to debt holders, most likely earning Greece a "selective default" rating.
Parker added shares might remain range-bound with progress impeded by issues such as the U.S. debt ceiling.
Other carmakers to rise included BMW , up 1.6 percent. The STOXX Europe 600 Autos Index rose 1.7 percent.
Germany's car market is set for further growth in the second half of the year after strong sales in June, an industry group said on Monday, sounding a bright note in contrast with other western markets.
Across Europe, Britain's FTSE 100 and Germany's DAX rose 0.5 and 0.3 percent respectively; France's CAC40 fell 0.1 percent.
The Thomson Reuters Peripheral Eurozone Countries Index fell 0.8 percent.
MALAISE
Some strategists remained cautious, however.
"Some clarity on the sovereign bailout front is welcome, but the wider economic malaise continues. Ahead of the earnings season we're nervous about earnings-per-share downgrades in some industrial cyclicals," said RBS in a note.
RBS said it found it "strange that industrials and chemicals have performed so well relative to the wider market, given the global macro trends".
Banks gave up some of their strong gains from last week. The STOXX Europe 600 Banking Index fell 0.6 percent. Lloyds , Royal Bank of Scotland and UniCredit fell between 1.4 and 1.8 percent.
Other factors that Parker said would be positive for equities included emerging markets having stopped monetary tightening, and more mergers and acquisitions.
He added: "Investors are still very long on cash despite last week's rally, and equities are attractive relative to bonds."
The Euro STOXX 50 , the euro zone's blue-chip index, however, fell 0.2 percent to 2,870.19 points after failing to break the 100-day moving average.
Dmytro Bondar, technical analyst at RBS, said Monday's correction could potentially extend to 2,840, the 50-day moving average, but the daily momentum was still bullish.
"Once 2,887 is cleared, the index will be likely to continue the uptrend to 2,950 and 2,990," he said.
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