STOXX up 0.4, automobiles lead gains
Continental set for best day in over two years
Ericsson slips after 1.09 billion impairment

July 4 Reuters European shares rose on Thursday amid optimism around U.S. interest rate cuts following soft economic data, while London markets gained as voting began in the UK with opinion polls predicting a historic win for the Labour party.

The panEuropean STOXX 600 index rose 0.4 by 0816 GMT, led by a 1.3 rise in the automobiles and parts subindex.

The subindex was powered by German automotive supplier Continental, whose shares jumped 10.1 to a threeweek high, with a trader pointing to preclose comments on auto unit.

The UK39;s FTSE 100 advanced 0.7, with markets waiting to see how large a majority the Labour Party might win.

The UK outcome, widely expected to be a Labour victory, won39;t have much impact unless there39;s a big upset or surprising outcome, as markets have likely already discounted this, said Bas van Geffen, senior macro strategist at Rabobank.

French stocks advanced for a second day with a 0.6 rise amid intensified efforts by opponents of France39;s National Rally RN to prevent the farright party from gaining power.

Weak U.S. data boosted sentiment on rate cuts as firsttime applications for U.S. unemployment benefits increased last week, indicating a cooling labour market.

German industrial orders fell unexpectedly in May, declining by 1.6 on the previous month on a seasonally and calendar adjusted basis.

Among…