European shares have finished up 1.29 percent after a day of choppy trading due to the quarterly expiration of options and futures contracts.

Among the influences were improved business activity and manufacturing data from the US as figures for Americans who continue to claim unemployment benefit fell for the first time since January, which points to the US labour market improving. London was the weakest market, and finished virtually unchanged, as UK government borrowing hit a record high, British factory orders fell slightly more than expected in June, with export orders experiencing their biggest drop in more than a decade. UK retail sales also unexpectedly declined. However economists say shares look overpriced and the rally is set to run out of steam.More about: Markets, Unemployment

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