European shares extend gains

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On 15:49 GMT, Thursday 5 November 2009

LONDON (Reuters) - European shares extended gains in afternoon session on Thursday, led higher by financial stocks, as investors returned to equities after better than expected U.S. macroeconomic data.

At 3:47 p.m., the FTSEurofirst 300 index of top European shares was up 1.1 percent at 995.98 points after falling to a low of 969.74 points earlier in the session.

Banks were among top gainers, with Standard Chartered (LSE: STAN.L - news) , BNP Paribas (Paris: FR0000131104 - news) , Societe Generale (Paris: FR0000130809 - news) , Credit Agricole (Paris: FR0000045072 - news) and Natixis (Paris: FR0000120685 - news) rising 0.7 to 4.2 percent.

U.S. data showed new claims for U.S. jobless aid fell to a 10-month low last week and business productivity in the third quarter grew at the fastest pace in six years.

(Reporting by Atul Prakash)

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