That data and continued positive sentiment after the successful passing of key austerity votes in Greece earlier in the week helped banks feature among the top gainers, with the sector index rising 2.7 percent.

"The ISM data comes at a time when markets feel some relief after the passage of two successful votes in Greece. It fits well into the current mood of relief," said Tammo Greetfeld, equity strategist at UniCredit in Munich.

"However, it remains to be seen whether a soft patch in the US economy is really over."

The FTSEurofirst 300 index of top European shares provisionally finished 0.7 percent higher at 1,118.60 points, the highest close in one month. After declining for eight straight weeks, the index rose 3.6 percent this week, the best performance in 10 months.

Copyright Reuters, 2011