European shares rose more than one per cent yesterday as upbeat US business data and lower jobs claims boosted a market already buoyed by robust earnings from blue chips such as chemical giant ICI.

While a flurry of positive profit and trading statements pulled buyers into the market, some companies disappointed and margin worries hit shares in consumer goods giant Unilever, while a sharp profit fall hurt carmaker BMW.

The European Central Bank left interest rates unchanged, as expected, and markets took support from the fact that the central bank's policy statement was not nearly as hawkish as had been priced into interest rate futures markets.

The FTSEurofirst 300 index of leading European shares posted an unofficial close of 1.4 per cent up at 1,222.4 points, having also won further impetus from Wall Street's extension of its gains from the previous session. "We're recovering from market weakness in October. The markets are drawing a line under that. In general the earnings figures that are coming through are good with the odd one that disappoints and today it's Unilever," said Jeff Currington, fund manager at Credit Suisse Asset Management.

ICI surged 6.6 per cent after quarterly profits came in at the top end of expectations and it kept its outlook unchanged - a decision welcomed after other firms had cut their guidance.