* FTSEurofirst 300 closes up 2.6 pct * Trade thin due to U.S. holiday * Financials and commodities boost index By Brian Gorman LONDON, Nov 27 (Reuters) - European shares closed higher on Thursday, led by commodities and financials, although volumes were light due to the Thanksgiving holiday in the United States. The FTSEurofirst 300 index .FTEU3 of top European shares rose 2.6 percent to close at 852.38 points. The index has risen 12 percent this week, but has fallen more than 43 percent so far this year. "We've had so many dead-cat bounces, you have to be a bit careful before saying this is the end of them," said Mike Lenhoff, strategist at Brewin Dolphin. "But it does have a different feel to it this time. The key this week was the Citigroup bailout. Also, the Federal Reserve's new initiatives. They're engaging in quantitative easing now, trying to get money into the economy by purchasing debt." Lenhoff said: "Bond yields have come down, with the Fed willing to buy debt and mortgage-backed securities. If bond yields continue to fall, that will help a sustained rally in equities." German insurer Allianz (ALVG.DE: Quote, Profile, Research, Stock Buzz) gained 10.1 percent. Traders said it was a technical rebound after the stock lost more than one-third in value earlier this month. Many insurers fell heavily when equity markets hit multi-year lows last week, as values of their portfolios slumped. They have benefitted strongly from the rally this week. The DJ Stoxx insurance index was the top sectoral performer with a rise of 5.5 percent. British insurers Prudential (PRU.L: Quote, Profile, Research, Stock Buzz) and Aviva (AV.L: Quote, Profile, Research, Stock Buzz) closed up 8.8 and 6.7 percent respectively. Aviva is up more than 80 percent from its low of Oct. 27. Dutch ING (ING.AS: Quote, Profile, Research, Stock Buzz) climbed 11.4 percent and AXA (AXAF.PA: Quote, Profile, Research, Stock Buzz) of France was up 8.2 percent. Banks were also firm, with Standard Chartered (STAN.L: Quote, Profile, Research, Stock Buzz) up 11.6 percent from its adjusted closing price on Wednesday as it began trading ex-rights. Allied Irish Banks (ALBK.I: Quote, Profile, Research, Stock Buzz), Anglo Irish Bank (ANGL.I: Quote, Profile, Research, Stock Buzz) and Bank of Ireland (BKIR.L: Quote, Profile, Research, Stock Buzz) closed up between 5.7 and 15.4 percent after the Irish Association of Investment Managers said a number of investment companies have put forward a plan to the Irish government over the possibility of co-investing with it in the recapitalisation of the banking system.

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