European equities were up yesterday afternoon amid thin trade on hopes that next week's US economic data will offset worries about the euro's rise and Dutch retailer Ahold's disappointing results.

Ahold slipped 5.8 per cent as the stock began trading ex-rights for its three million euro capital increase and brokers cut earnings forecasts on the stock after disappointing third-quarter results on Wednesday.

"But I think the main point is that the rights issue is done and the balance sheet is stronger then it was," said Tom Muller, analyst at Insinger Townsley. "It's a step towards normal."

"Philips is profiting from positive expectations for consumer spending... People are waiting to see some nice figures from the United States next week."

The world's biggest flat screen maker Philips Electronics rose 2.2 per cent after rival Samsung said it expected its flat screen sales to rise 40 per cent in 2004.

By 1500 GMT, the FTSE Eurotop 300 index of pan-European blue chips was 0.36 per cent higher at 934.39 points, while the narrower DJ Euro Stoxx 50 index rose 0.5 per cent at 2,632.67 points.

Strategists said a weak dollar, holding less than a cent above its recent record low versus the euro of $1.1977 set on November 19, was making investors cautious.

"The good data out of the US is at odds with the dollar... a strong euro/weak dollar is bad for European stock markets," said Stewart Higgins, European investment director at fund manager Martin Currie.

But next week should see European stocks rise as purchasing managers' surveys in the United States and Europe and US non-farm payrolls for this month should boost investor and consumer confidence in the strength of economic recovery.

"I suspect next week and the week after will be very strong in the face of compelling data," said Nomura chief strategist Anais Faraj, adding that five per cent upside before year-end was clearly within targets.

In the past few days, surprisingly strong US data on GDP, employment, manufacturing, durable goods and consumer confidence has failed to lift markets significantly.

With US markets closed for the Thanksgiving Day holiday yesterday, trade today is also expected to be lacklustre if players extend the break to the weekend.

In Frankfurt the Dax was up 0.74 per cent to 3,740.50 points, Paris's CAC gained 0.26 per cent to 3,423.95 and Switzerland's SMI rose 0.33 per cent to 5,315.7.

London's FTSE 100 fell 0.28 per cent to 4358.2 as metals and chemicals giant Johnson Matthey lost 3.8 per cent on worries about the drag on profits from a weak dollar and a new contract with Anglo American Platinum.

Britain's Rank Group also hit the FTSE, down 5.5 per cent as investors focussed on signs of continued tough trading at its Hard Rock Cafes and Deutsche Bank cut its rating on the stock to "hold" from "buy".

But British mobile phone operator mmO2 lent support to the FTSE with gains of 4.5 per cent as investment bank Goldman Sachs upped its rating to "in-line" from underperform.