UPDATE 1-European shares at six-year high, buoyed by Spain

* FTSEurofirst 300 rises to six-year high * Euro STOXX 50 also rise * Spain gets boost from Moody's * Volkswagen, HSBC cap gains By Joshua Franklin LONDON, Feb 24 (Reuters) - Demand for Spanish equitieshelped European shares to six-year highs on Monday, butweaker-than-expected results from HSBC and a disappointingoutlook from Volkswagen capped the gains. Spanish stocks rose 1.2 percent after Moody's raisedSpain's sovereign debt rating one notch to Baa2 with a"positive" outlook. Sentiment was also lifted bydata that showed German business morale rose in February to itshighest level since July 2011. European stocks have risen sharply over the past 2-1/2weeks, with the CAC-40 hitting a 5-1/2-year high on Friday,boosted by hopes the region's economy and corporate profits willrecover this year. "The outlook for corporate earnings, helped first by exportsand now by a recovery in domestic demand, is improving," saidAnn Steele, European equity fund manager at ThreadneedleInvestments. "Consumer confidence on the continent is on the up,and countries that have been most prepared to undergo difficultreform are reaping benefits in terms of GDP growth." The pan-European FTSEurofirst 300 closed up 0.6percent at 1,351.65 points, the highest closing price since May2008. The euro zone's blue-chip Euro STOXX 50 indexfinished up 0.8 percent at 3,157.31 points. British mobile operator Vodafone rose 4 percent.Vodafone's shares have gained on the prospect of one of thelargest capital returns in corporate history, after it sells itsstake in U.S. mobile-phone company Verizon Wireless. Slowing the rally, shares in HSBC fell 2.8percent. Europe's largest bank posted results that fell short ofexpectations and warned of more volatility in emergingmarkets. The drop was even sharper for Volkswagen, whichsank 9.2 percent after it issued a disappointing 2014 outlookand announced plans for what some considered a generous buyoutof truck maker Scania's minority shareholders, sendingshares in the latter up 31.9 percent. Worries brewing over credit restrictions on China's propertysector also kept investors on edge. Mining shares, which have a big exposure to resource-hungryChina, retreated, with Rio Tinto down 1.8 percent andAnglo American down 1.7 percent. Around Europe, UK's FTSE 100 index was up 0.4percent, lagging continental indexes. Germany's DAX gained 0.5 percent and France's CAC 40 rose 0.9 percent. "The prospect of a pick-up in growth in the euro zone hasbeen one of the big catalysts for the market in the past fewweeks," said Vincent Ganne, analyst at derivatives broker FXCM. "With a lot of data coming out this week, including Friday'sinflation figures, fund managers' risk appetite will be tested.We need more positive news, otherwise investors will starthaving doubts." Europe bourses in 2014:Asset performance in 2014:Today's European research round-up