Europe shares advance with HBOS, Carrefour in lead

* Top-300 index up 0.3 percent, rises 1.2 percent in August

* HBOS and Carrefour leading gainers; Nokia biggest loser

* Economic data mixed; strategists wary on market prospects

By Peter Starck

FRANKFURT, Aug 29 (Reuters) - European shares rose for the fourth straight day on Friday, led by UK bank HBOS (HBOS.L) and French retailer Carrefour (CARR.PA), while Finnish mobile phone maker Nokia (NOK1V.HE) was the biggest blue-chip loser.

But economic data was mixed on both sides of the Atlantic and equity strategists saw scant scope for stock markets to rally.

"We still see no clear trigger for a sustained recovery," UniCredit's Gerhard Schwarz said, citing the ongoing credit crisis, inflationary pressures and downward revisions to corporate earnings estimates.

"We expect more negative news from the financial industry and on the economic outlook front in coming weeks and months and that is not going to calm the nerves of investors," said Heinz-Gerd Sonnenschein, equity strategist at Postbank.

LandesBank Berlin said fundamentals and chart-technical signals pointed to continued volatility in euro zone stock markets, making possible a test of year-lows hit in mid-July.

On Friday the FTSEurofirst 300 .FTEU3 index of top European shares closed 0.3 percent higher at 1,194.73 points. The index advanced 1.2 percent for the month, August marking only its second month of gains in the last 10.

It is down 21 percent this year, hurt by bank writedowns, a slowing economy and uncertainty over interest rates.

Mortgage lender HBOS (HBOS.L) led Friday's rise, putting on 3.4 percent amid market talk it was about to sell its Australian operation, traders said. HBOS declined to comment.

Dutch-Belgian financial group Fortis (FOR.AS) rose 2.8 percent and Royal Bank of Scotland (RBS.L) added 2.1 percent.

Carrefour (CARR.PA) shot up 7.2 percent after the French group met key profit expectations for the first half and stood by its 2008 forecasts. The DJ Stoxx European retail index .SXRP climbed 1.5 percent.

Nokia (NOK1V.HE) fell 2.2 percent, with traders citing an upcoming change in a key MSCI index, which is likely to trigger selling, and gloomy comments from rival Samsung (005930.KS).

Global equities rose sharply on Thursday after news that the U.S. economy grew more than expected in the second quarter.  Continued...