Europe shares extend gains after US data, banks up

LONDON, July 27 Tue Jul 27, 2010 9:11am EDT

LONDON, July 27 (Reuters) - European shares extended gains in afternoon trade on Tuesday, led higher by banks, after figures showed U.S. single-family home prices rose more than expected in May.

The 20-city composite price index of Standard & Poor's/Case Shiller rose 0.5 percent on a seasonally adjusted basis in May after an upwardly revised 0.6 percent gain in April, topping the 0.2 percent rise forecast in a Reuters poll. [ID:nNLLRIE6A8]

At 1310 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 1.1 percent at 1,060.64 -- it's highest in five weeks.

Financial stocks were among the top gainers, with the STOXX Europe 600 banking index .SX7P rising 4.8 percent. UBS (UBSN.VX) surged 10.4 percent after strong results, while Barclays (BARC.L) rose 8.3 percent.

(Reporting by Atul Prakash)

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