European shares hit 6-month highs on Fed stimulus

* FTSEurofirst 300 rises above 1,100 for 1st time since Apr

* Federal Reserve's stimulus plan boosts market sentiment * BoE, ECB leave interest rates unchanged

By Atul Prakash

LONDON, Nov 4 (Reuters) - European equities climbed to six-month highs on Thursday, with appetite for risky assets jumping after the U.S. Federal Reserve unveiled fresh stimulus plans to lower borrowing costs for consumers and businesses.

The central bank, which had come under intense pressure to take action to increase business activity and create more jobs, on Wednesday committed to buy $600 billion in government bonds, and said it could adjust purchases depending on the strength of the recovery. [ID:nN03163902]

At 1251 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 1.6 percent at 1,106.41 points, the highest since late April.

Construction and materials shares topped the gainers list, with the sector index <.SXOP> surging 3.1 percent on hopes a global economic recovery will boost construction activities.

Swedish construction company Skanska rose 3.9 percent, also helped by its better-than-expected third-quarter pretax profit, while CRH , Holcim and FLSmidth gained 3.3 to 4.7 percent.

Analysts said the market will now focus on economic numbers.

"The Fed did leave the door open and could take further action later down the road. That might be another factor boosting investor confidence," said Keith Bowman, equity analyst at Hargreaves Lansdown.

"We have got another major hurdle to come this Friday with the release of U.S. jobs data. The QE2 provided some support, but investors will still be looking to see how the economic data is panning out and where that takes the authorities next."

The decision takes the Fed into largely uncharted waters, with the country still suffering in the aftermath of the worst recession since the Great Depression.

BOE, ECB RATE DECISIONS

The European Central Bank kept interest rates at 1 percent as expected on Thursday, leaving markets focused on how its President Jean-Claude Trichet explains a transatlantic policy split after the Fed's move. [ID:nLDE6A30V4]

The Bank of England also left interest rates at 0.5 percent and kept its asset-buying programme on hold. [ID:nLDE6A31DB]

Investors rushed to grab risky assets like equities, and the mood was captured by the VDAX-NEW volatility index <.V1XI>, one of Europe's main barometers of investor anxiety, which fell 12.5 percent to hit a near two-week low. The lower the index, the higher the market's desire to take risk.

Miners got strength from higher metals prices, which rose on expectations the Fed's move would help economic recovery, and spur demand for raw materials. Anglo American , Antofagasta , Rio Tinto , Xstrata and Eurasian Natural Resources rose 4.3 to 5.6 percent.

Analysts said strong company results also helped the market.

BNP Paribas , France's biggest listed bank, rose 4.4 percent after forecast-beating third-quarter results.

"Consensus-beating results continue to be supportive to the market along with the fact authorities seem to be ready, willing and able to support the economic recovery, which is good news," Henk Potts, equity strategist at Barclays Wealth, said. (Additional reporting by Joanne Frearson; Editing by Sharon Lindores and Jane Merriman)