US stocks rose at the open after data showed a steep pickup in productivity and a decline in applications for jobless insurance.

Upbeat results from technology bellwether Cisco Systems Inc and a rise in retailers' October same-store sales also boosted equities.

The Dow Jones industrial average gained 79.05 points, or 0.81 percent, to 9,881.19. The Standard & Poor's 500 Index .SPX rose 6.78 points, or 0.65 percent, to 1,053.28. The Nasdaq Composite Index jumped 23.95 points, or 1.17 percent, to 2,079.47.

European shares are lower ahead of interest rate decisions by the Bank of England and the European Central Bank, with banks and commodity stocks the biggest losers.

The pan-European FTSEurofirst 300 index of top shares is down 1.1 percent at 973.69 points.

"Even though there have been some good banking figures coming out, we are still not finding any particular direction. We are seeing it pull back today," said Justin Urquhart Stewart, director at Seven Investment Management.

"We are waiting to see if there is going to be a decision from the Bank of England. I think there is unlikely to be any change and I do not think the ECB will make any significant changes," he said.

Both, the BoE and the ECB are expected to leave interest rates unchanged. The Federal Reserve stated on Wednesday that it would keep rates close to zero for "an extended period".

Banks took the most points off the index in Europe. HSBC, Banco Santander and Credit Suisse were down 1.2 to 1.8 percent.

However, BNP Paribas, the euro zone's second-biggest bank by market capitalisation, gained 0.6 percent after it posted higher profits that beat market forecasts and trumped the results of many rival banks.

Commodity stocks featured among the biggest fallers. Petroplus, Europe's largest independent oil refiner, fell 6 percent after it missed forecasts with a third-quarter net loss of US$259.4 million.

Miners were lower as metal prices retreated. Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation, Rio Tinto and Xstrata were down 1.6 to 3.2 percent.

Japan's Nikkei average fell 1.3 percent to hit its lowest close in a month, with Sony Corp and other exporters slipping as investors locked in profits on caution ahead of US jobs data.

Market players said selling by hedge funds also weighed on the market.

The benchmark Nikkei shed 126.87 points to 9,717.44, its lowest finish since Oct. 6. The broader Topix slipped 0.7 percent to 874.96.