European Shares Extend Gains After US Data, BoE

European shares rose on Wednesday, extending earlier gains after U.S. data showed a sharper fall than expected in durable goods orders.

European shares rose on Wednesday, extending earlier gains after U.S. data showed a sharper fall than expected in durable goods orders, raising the chances of another rate cut as growth slows.

By 1253 GMT the FTSEurofirst 300 index of top European shares was up 1 percent at 1,544.98 points, just off the high for the day at 1,545.39 points and up from 1,542.22 points just before the data.

The U.S. government said durable goods orders fell by 4.9 percent in August, after a an upwardly-revised 6.1 percent gain in July, compared with forecasts for a fall of 3.1 percent.

Banks were the top performing sector after a number of broker upgrades to UK financial institutions and after the Bank of England said it had received no bids at a three-month money auction, suggesting tight credit conditions were easing.

London's FTSE 100 index was up 1.2 percent, while Frankfurt's DAX gained 0.5 percent and Paris' CAC 40 rose 1.2 percent.