European shares extended gains in afternoon trade today after better-than expected U.S. July existing homes sales, with banking stocks the major risers, according to Reuters. By 1422 GMT, the FTSEurofirst 300 index of top European shares was up 2.4 percent at 967.6 points, hitting its highest level since early November. "Cracking set of home sales from the U.S, which were much better than the market had been looking for. They have really cheered up what was already a fairly positive day. It is more fuel on the fire of the bull market," said Jim Wood-Smith, head of research at Williams de Broe. Sales of previously owned U.S. homes in July notched their fastest pace in nearly two years, an industry survey showed, the strongest sign yet that housing was pulling out of a three-year slump. Banks added the most points to the index, with UBS up 5.9 percent. The group said it sees a strong recovery in the Australian wealth management market in 12 to 18 months and expected consolidation at the higher-end of the business as the market recovered from a period of turbulence. BNP Paribas, Banco Santander and HSBC were 1.6 to 4 percent higher. U.S. Federal Reserve Chairman Ben Bernanke said the global economy appears on the mend after a deep downturn, but the recovery is likely to be sluggish and risks remain.
