European shares extend gains as banks strengthen

LONDON, Sept 18 (Reuters) – European shares rose further in afternoon trade on Thursday, as a coordinated action by major central banks to pour billion of dollars into money markets helped stocks, especially banks.

At 1127 GMT, the FTSEurofirst 300 index of top European companies was up 1.4 percent at 1,085.01 points. It hit an intraday high of 1,087.67 points.

Banks were the top-weighted gainers, with Britain's HBOS surging 52 percent after Lloyds TSB sealed a $21.7 billion deal to buy the embattled mortgage lender.

Lloyds was up 5.4 percent, while UBS advanced 10.8 percent, Credit Suisse climbed 9 percent and BNP Paribas added 6.6 percent.