Banks, miners lift European shares; earnings eyed

* FTSEurofirst 300 up 0.4 pct

* Banks gain ahead of Morgan Stanley results, miners strong

* Novo Nordisk up on U.S. setback for rivals

* For up-to-the-minute market news, click on [STXNEWS/EU]

By Harpreet Bhal

LONDON, Oct 20 (Reuters) - European shares rose by midday on Wednesday as miners rebounded on a weak dollar and banks rose ahead of results from U.S. peer Morgan Stanley (MS.N), while Novo Nordisk (NOVOb.CO) gained after a setback for its rivals.

Shares were also supported by minutes from the Bank of England which reinforced expectations the central bank is edging towards further quantitative easing. [ID:nLDE69J0S9]

"We saw a bit of buying back into the market after the Bank of England minutes insinuated that the chances of more easing as opposed to more tightening have now taken a step onwards," said Joshua Raymond, market strategist at City Index.

By 1122 GMT the pan-European FTSEurofirst 300 .FTEU3 index of top shares was up 0.4 percent at 1,086.77 points, after slipping 0.5 percent on Tuesday.

Novo Nordisk rose 8 percent to the top of the FTSEurofirst 300 index, rebounding from losses in previous session after U.S. health regulators declined to approve a diabetes drug being developed by peers Amylin Pharmaceuticals (AMLN.O) and Eli Lilly (LLY.N).

That boosted prospects for Novo's key new product hope Victoza.

Miners were also firmer, drawing strength from strong metals prices as the dollar retreated following gains on Tuesday after a surprise interest rate hike by China.

Eurasian Natural Resources (ENRC.L), BHP Billiton (BLT.L) and Xstrata (XTA.L) added 1.8 to 2.2 percent.

Rio Tinto (RIO.L) added 2 percent after it approved a $3.1 billion iron ore expansion, staking a claim to become the world's top producer and defying industry concerns over a new Australian mining tax. [ID:nSGE69J01W]

Banks were also on the rise, with investors likely to focus on results from U.S. peers Morgan Stanley (MS.N) and Wells Fargo & Company (WFC.N) to gauge the health of the banking sector.

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