LONDON, Aug 13 (Reuters) - European shares closed higher on Thursday, after France and Germany unexpectedly reported economic growth, but gains were scaled back after data in the United States was less upbeat.
The pan-European FTSEurofirst 300 index of top shares rose 0.7 percent to a provisional close of 948.72 points, after touching a nine-month high of 956.10 points.
Banks added the most points to the index.
UBS rose 5.4 percent as investors expected the settlement of a damaging U.S. tax dispute to allow the bank to focus on becoming profitable again.
Credit Suisse, HSBC and UniCredit rose between 2.5 and 3.2 percent.
"The market is willing to look through data now," said Georgina Taylor, equity strategist, at Legal & General Investment Management. "I might have expected to see a bit more red on the screen. There is a belief that we're at the trough."
Sales at U.S. retailers unexpectedly fell in July from June, a government report showed, casting a shadow over an anticipated rebound in consumer spending in the third quarter.
Initial weekly jobless claims rose to 558,000 last week, up from 554,000 the previous week. Analysts had expected a drop to 545,000, from the previously reported 550,000.
Germany and France achieved a shock return to economic growth in the second quarter of the year, ending their recessions earlier than many policymakers and economists expected. (Reporting by Brian Gorman)