* FTSEurofirst 300 index up 1.2 percent
* BHP Billiton jumps on Potash bid block
* Man Group climbs on AHL revival
* For up-to-the minute market news, click on By Joanne Frearson
LONDON, Nov 4 (Reuters) - European shares rose on Thursday to their highest level since April after the U.S. Federal Reserve unveiled a plan to buy assets, while BHP Billiton jumped after Canada blocked its Potash bid.
By 1003 GMT, the pan-European FTSEurofirst 300 index of top shares was 1.2 percent higher at 1,102.19 points, trading above 1,100 for the first time since April.
"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.
Risk appetite was boosted after the U.S. central bank said it would spend about $75 billion per month buying longer-term Treasury bonds through the end of June and could adjust purchases depending on the strength of the recovery.
The VDAX-NEW volatility index, one of Europe's main barometer's of investor anxiety, dropped 11.5 percent to hit a near two-week low, signalling a rise in investor appetite for risky assets.
Commodity stocks were given a boost on hopes the Fed stimulus would spur global recovery, with crude oil and metal prices ticking higher, with the STOXX Europe 600 Basic Materials index surging 3.2 percent.
"Our belief is the biggest direct beneficiary (to another round of quantitative easing) would likely be the mining sector, as strong international capital flows reinforce powerful domestic credit creation in emerging markets. Also this is one of the most correlated sectors to rising producer price inflation," UBS said in a note.
BHP Billiton gained 4.5 percent after Canada blocked BHP's $39 billion bid for Potash Corp.
BNP PARIBAS GAINS
Strong corporate results also helped boost banking stocks. BNP Paribas rose 3 percent after forecast beating results and the French bank ruled out a Basel-linked capital increase.
Other financial stocks were also in demand on the back of strong results. Man Group, the world's largest listed hedge fund firm, gained 6.9 percent after it said client assets rose to $40.5 billion at end-Sept.
Swiss Reinsurance rose 6.4 percent after the world's second-biggest reinsurer beat third-quarter profit expectations on low catastrophe payouts.
Construction stocks also featured among the top performers. HeidelbergCement jumped 7.2 percent after it beat expectations for third-quarter operating profit.
The technical picture looked bullish, though Bill McNamara, analyst at Charles Stanley, said "the Euro STOXX 50 would need to rise above its October high of 2,891 to convince the market it is making an assault on the peak reached in April of 3,027."
The index was up 1.9 percent at 2,882.76 points.
Later in the session investors will eye interest rate decisions by the Bank of England and European Central Bank. The Bank of England is likely to announce at 1200 GMT that it is keeping the base rate at its record low of 0.5 percent.
With the British economy having grown strongly in the last two quarters, analysts say further quantitative easing by the BoE is unlikely for now.
The European Central Bank, which makes its announcement at 1245 GMT, is set to keep its key rate unchanged at 1 percent.
Across Europe, Germany's DAX gained 1.4 percent and the FTSE 100 index rose 1.4 percent both hitting their highest level since June 2008, while France's CAC 40 was up 1.9 percent its highest level since late April. (Reporting by Joanne Frearson)