European shares hold on to small gains ahead of Fed announcement

* FTSEurofirst 300 up 0.3 pct

* Fugro (Xetra: A0ET3V - news) tumbles 22 pct after cancelling payout

* Total, Schneider up after results

By Francesco Canepa

LONDON, Oct 29 (Reuters) - European stocks held on to small

gains on Wednesday despite disappointing results from Dutch

marine services group Fugro, among other firms,

partly offsetting optimism ahead of a U.S. Federal Reserve

policy announcement.

Fugro sank 22 percent after it warned that it will not pay a

dividend for 2014 due to deteriorating markets and price

pressure on oil and gas projects.

Sentiment also took a knock after a profit warning from

Italian oil industry services group Saipem (Other OTC: SAPMY - news) , which sent

shares in sector peer CGG (NYSE: CGG - news) down 3.4 percent.

On the upside, investors welcomed oil major Total's

decision to maintain its dividend while pressing ahead

with cost cuts after falling oil prices squeezed its

third-quarter profits. The shares rose 1.7 percent.

The broader FTSEurofirst 300 index of top European

shares was up 0.3 percent at 1,320.93 points by 1142 GMT, rising

for the fourth of the past seven sessions albeit in low volume.

Trading volume on the index was equal to less than a third

of its full-day average for the past 10 days.

Global shares have rebounded during that time after a sharp

pullback, as investors took heart from generally strong

corporate earnings, especially in the United States, and the

prospect of an accommodative stance from Federal Reserve.

The market expects the Fed's Federal Open Market Committee

to announce it will end years of stimulus measures this month

but also send a soothing message by signalling interest rates

are not likely to rise soon.

"The volumes into the rally are waning," Monument Securities

head of sales, Andy Ash, said. "As we approach the FOMC meeting

and the month end, we have catalysts to pivot once again."

Europe bourses in 2014: http://link.reuters.com/pap87v

Asset performance in 2014: http://link.reuters.com/gap87v

Today's European research round-up

OUTLOOK MIXED

European corporate results, have been largely in line or

above expectations so far although outlooks remained mixed.

Industrial group Schneider Electric rose 2.3

percent after reporting a 7 percent rise in third-quarter sales

and saying Western Europe showed long-awaited but fragile signs

of stabilisation.

Europe's largest semiconductor company STMicroelectronics

shed 9.1 percent after posting higher-than-expected

quarterly net profit but saying margins would be flat and

revenue would fall in the final quarter due to a softening

market.

Spanish bank BBVA, down 3.2, weighed on the Euro

STOXX banking index as it reported a lower-than-expected

net profit for the first nine months of the year and said its

investment in improving its digital banking offering could hit

profits in the fourth quarter.

About a third of companies listed on the STOXX Europe 600

benchmark index have reported results so far in the

earnings season, with 67 percent of them meeting or beating

profit forecasts, and 59 percent meeting or beating revenue

forecasts, according to Thomson Reuters Starmine data.

In absolute terms, European companies have posted a 13.6

percent rise in quarterly earnings and 0.7 percent in revenue.

(Additional reporting by Blaise Robinson in Paris; Editing by

Louise Ireland)