European shares hit four-month high on U.S. data

LONDON, Sept 9 (Reuters) - European shares extended gains inafternoon trading on Wednesday and climbed to their highest inmore than four month s after data showed new U.S. claims for unemployment benefitsfell more than expected last week. The U.S. trade deficit also narrowed more than expected inJuly, as imports retreated and exports shot to their highestsince August 2008.

At 1236 GMT, the FTSEurofirst 300 index of top Europeanshares was up 0.9 percent at 1,081.12 points after touching1,081.70, the highest since late April.

(Reporting by Atul Prakash)