STOCKHOLM, Oct 20 (Reuters) - Global home appliances maker Electrolux posted a bigger than expected rise in third quarter core earnings on Monday but said the 2014 outlook for European market demand was running at the lower end of its forecast.

The Swedish group, vying for market leadership with U.S. Whirlpool and China's Haier, said it still expected the U.S. market to expand 4 percent and the European to rise 1-3 percent, but for the latter market growth was seen at the lower end of the range.

Electrolux said adjusted operating earnings rose to 1.39 billion Swedish crowns ($193 million) from a year-ago 1.08 billion to come in above a mean forecast of 1.33 billion in a Reuters poll of analysts. (1 US dollar = 7.1852 Swedish crown) (Reporting by Niklas Pollard and Johannes Hellstrom)