European shares extend gains after Chicago PMI

FRANKFURT, Aug 29 (Reuters) - European shares extended their gains in afternoon trade on Friday after an unexpectedly strong reading on an indicator of business activity in the U.S. Midwest.

The FTSEurofirst 300 index .FTEU3 of top European shares rose as much as 0.7 percent to 1,199.41 points -- its highest since Aug. 13.

It gave up some of the gains to trade 0.5 percent higher at 1,196.48 points by 1359 GMT.

The Institute for Supply Management-Chicago business barometer, the so-called Chicago PMI, surged to 57.9 in August from 50.8 in July. Economists had forecast the index at 50.0, straddling the line between expansion and contraction.

Separately, the Reuters/University of Michigan Surveys of Consumers August final consumer sentiment index rose to 63.0 from July's final reading of 61.2 -- also above market expectations.

Leading U.S. stock market indexes .DJI .SPX .IXIC were between 0.4 and 0.9 percent lower. (Reporting by Peter Starck)