U.S. jobs data gives European shares a boost

* FTSEurofirst 300 index rises 1.6 percent

* U.S. jobs data boosts cyclical stocks

* Greece debt swap deal concerns loom

By Joanne Frearson

LONDON, Feb 3 (Reuters) - European shares made their highest weekly gain since late December on Friday, surging past a resistance level, after forecast-beating U.S. jobs data raised hopes about an economic recovery that could boost company earnings.

Cyclical auto and bank stocks, whose profits could improve with stronger economic growth, were the standout gainers, with the STOXX Europe 600 Automobiles & Parts index up 2.7 percent and the STOXX Europe 600 Banks index up 2.5 percent.

Investor sentiment improved after U.S. non-farm payrolls rose at the fastest pace in nine months, while the unemployment rate dropped to a near three-year low.

"The U.S. economy is moderately recovering," said Richard Batty, strategist at Standard Life Investments, which has $248.37 billion of assets under management. "Corporates could be becoming more confident, we like equities in the United States."

Another standout gainer from the strong U.S. jobs data was the world's second-largest staffing firm, Randstad, up 5 percent to feature in the top movers list on expectations that demand would increase.

Markets had been supported earlier after euro zone private sector growth expanded in January for the first time since August, boosting the chance the euro zone may avoid a recession.

The pan-European FTSEurofirst 300 index of top shares closed up 1.6 percent at 1,076.70 points, staying near six-months highs, after being as low as 1,056.55 and making its biggest weekly rise since late December.

Volume was strong at 112.1 percent of its 90-day daily average.

In a bullish move, the index broke past its 61.8 percent Fibonacci retracement level at 1,062.24 points from its February 2011 high to September 2011 low, which had been a major resistance level.

This could mean the index could push up to 1,113.73, the level it reached in late July 2011 before it retraced to its September 2011 low.

Futures for the Euro STOXX 50 were up 1.4 percent at 2,514. Philippe Delabarre, Technical Analyst at Trading Central, sees "2,525 points as the first target for the futures, which is the measured move of the oscillation between yesterday's high & low and 2,585 points as the second target."

"The last target is a former significant threshold from summer 2010."

GREECE OVERHANG

Greece, however, is likely to cap gains, with uncertainty surrounding a debt swap deal between the country and its private creditors needed to avert a messy default which could cause chaos in the financial markets.

Euro zone finance ministers put off a meeting expected on Monday to finalise the rescue, although a meeting may be held later next week.

"We still do not have a clear roadmap for the euro zone debt crisis and Greece, which will continue to overhang the markets. We are still neutral to underweight Europe," Batty said. (Reporting by Joanne Frearson; Editing by Erica Billingham) ($1 = 0.6321 British pounds)