European shares extended gains in afternoon trade on Wednesday after data showed the U.S. economy grew a bit faster than initially thought in the fourth quarter on slightly firmer consumer and business spending.

The FTSEurofirst 300 index <.FTEU3> of top European shares was up 0.4 percent at 1,080.62 points after falling to a low of 1,076.86 earlier in the session.

(Reporting by Atul Prakash)