* FTSEurofirst 300 rises 0.5 pct to 1,129.83 points
* Euro STOXX 50 up 0.6 pct to 2,608.08 points
* Germany's DAX sets new year high
* EADS up after new deal to overhaul shareholding structure
By Sudip Kar-Gupta
LONDON, Dec 6 (Reuters) - European shares climbed higher on
Thursday, helped by gains at aerospace company EADS,
although some traders said they would still look to sell due to
uncertainty over U.S. budget talks.
The pan-European FTSEurofirst 300 index rose by 0.5
percent to 1,129.66 points, having earlier set a fresh 2012 high
after reaching an intraday peak of 1,130.06 points.
The euro zone's blue-chip Euro STOXX 50 index
also advanced by 0.6 percent to 2,608.08 points.
EADS was the top performer on the FTSEurofirst 300 index,
rising by 7.2 percent after the company's main shareholders
clinched a deal to overhaul its ownership structure.
Analysts said the new deal would diminish the influence of
EADS' French and German government shareholders, which in turn
would be positive for the stock.
"We raise EADS to 'buy' from 'neutral', as the underlying
growth story is very compelling, and as we take a favourable
view of lower government influence and higher free float," Bank
of America Merrill Lynch analysts wrote in a research note.
U.S. FISCAL CLIFF WORRIES
Germany's DAX set a new year-high of 7,526.69
points on Thursday, with the index up by 0.9 percent at 7,519.14
points in early morning.
Central Markets senior broker Joe Neighbour said he would be
tempted to sell the Euro STOXX 50 index while it remained below
the 2,635 point level, due to uncertainty over U.S. budget
U.S. politicians remain in talks over trying to reach an
agreement over the "fiscal cliff" - a combination of government
spending cuts and tax rises due to be implemented under existing
law in early 2013 that may cut the federal budget deficit but
also tip the economy back into recession.
However, Tavira Securities head of trading Toby Campbell
Gray was more bullish, saying concerns over the U.S. situation
"The equity market is for buying. You don't want to be too
'short' going into the end of the year."
(Reporting by Sudip Kar-Gupta; Additional reporting by David
Brett; Editing by Chris Pizzey, London MPG Desk, +44 (0)207