Europe stocks gain from weak euro, oil; EADS jumps

* FTSEurofirst 300 gains 0.7 percent

* Banks, drug stocks top weighted gainers

* EADS, car stocks gain on weak euro

By Sitaraman Shankar

LONDON, Aug 15 (Reuters) - European shares rose in early trade on Friday, led by financial and pharmaceutical stocks, while the euro at six-month lows against the dollar boosted exporters and falling oil chipped away at inflation worries.

At 0835 GMT, the FTSEurofirst 300 index of top European shares was up 0.7 percent at 1,194.33 points, on track for a loss of less than 0.5 percent for the week.

Banks were broadly higher, with UBS up 1.9 percent, Royal Bank of Scotland up 1.6 percent and Commerzbank up 2.3 percent.

Defensive pharmaceutical stocks also gained, with Sanofi-Aventis up 2.3 percent after Warren Buffett's Berkshire Hathaway investment group raised its stake.

GlaxoSmithkline gained 0.9 percent, Roche rose 1 percent and Elan added 5.5 percent.

Mining stocks tracked metal prices lower. Miners Xstrata , Anglo American , Rio Tinto and BHP Billiton were down 1.4-3.2 percent and the top four negative weights on the index as copper fell 2.2 percent and gold fell more than 3 percent.

Oil CLc1 fell $2.25 a barrel to below $113, a far cry from a record high above $147 set last month.

"Slowing commodity prices could stabilise the market but are not a trigger for a sharp move up," said Heinz-Gerd Sonnenschein, strategist at Postbank in Bonn, Germany.

Across Europe, Britain's FTSE .FTSE gained 0.7 percent, Germany's DAX .GDAXI rose 1 percent and France .FCHI rose 1.1 percent.

EADS JUMPS ON EURO, CARMAKERS STRONG

Falling oil and metal prices have taken the edge off inflation fears and raised the prospect of rate cuts in the region, which would reduce borrowing costs for companies and leave consumers with more money to buy companies' products.

And a weakening euro is supportive of exporters in the region as it makes their products more competitive in the international market.

The euro hit a six-month low against the dollar as worries over European economic growth combined with the effect of investors liquidating holdings in commodities and energy markets. Sterling struck a 22-month low against the greenback.

Gainers included aerospace and defence group EADS , which rose 4.4 percent, while carmaker BMW rose 2 percent and Renault gained 1 percent.

"As for the weakness of the euro, it needs a bit of time to reflect in company balance sheets -- over the next weeks and months, company comments may get more positive," said Sonnenschein.

Airline stocks gained from the lower oil price, with British Airways up 3.3 percent, Lufthansa up 2.1 percent and Air France-KLM up 2.5 percent.

(Reporting by Sitaraman Shankar; Editing by Erica Billingham)