LONDON, Aug 7 (Reuters) - European shares closed higher on Friday, reversing earlier losses, after unemployment in the United States rose less than expected in July.
The FTSEurofirst 300 index of top European shares rose 1.2 percent to a provisional close of 950.15 points, its highest close since Nov. 5. Over the week, the index rose 2.3 percent, its fourth week of gains.
Telecoms, among the best performers in the morning, due to their defensive qualities, had extended their gains by the close.
Vodafone, Telefonica, Deutsche Telekom and France Telecom rose between 2.6 and 4 percent.
"The U.S. jobless numbers were a very pleasant shock and really truned it (the market) round," said David Buik, senior partner, at BGC Partners in London. "It's a step in the right direction."
But Buik added that markets may be in for a correction next week, if the jobless data boosts the dollar, hurting oil prices.
U.S. employers cut 247,000 jobs in July, far less than expected and the least in any month since last August, according to a government report on Friday that provided the clearest evidence yet that the economy may be turning around.
The European benchmark index is up more than 47 percent from its lifetime low of March 9, as investors have become more confident on the prospects of recovery.
Banks, which had weighed heavily on the index in the morning, closed mostly higher.
BNP Paribas, Banco Santander and Deutsche Bank were up between 2 and 3.3 percent.
Royal Bank of Scotland fell 12.9 percent after reporting a first-half loss. (Reporting by Brian Gorman)