LONDON, Sept 9 (Reuters) - European shares extended gains in afternoon trading on Wednesday and climbed to their highest in more than four month s after data showed new U.S. claims for unemployment benefits fell more than expected last week. The U.S. trade deficit also narrowed more than expected in July, as imports retreated and exports shot to their highest since August 2008.
At 1236 GMT, the FTSEurofirst 300 index of top European shares was up 0.9 percent at 1,081.12 points after touching 1,081.70, the highest since late April.
(Reporting by Atul Prakash)