By William L. Watts, MarketWatch

FRANKFURT (MarketWatch) -- Wall Street held sway over Europe on Thursday, with the Dow Jones Industrial Average's extended record run providing upside momentum while Italian stocks rebounded as investors cheered results from Assicurazioni Generali SpA.

The Stoxx 600 Europe Index rose 0.5% to 296.83, hitting its highest level since June 2008.

"Equities resumed their upward trend in early trade this morning following a ninth consecutive up day for the Dow 30. Inevitably there will be much chatter today about the index potentially extending its winning streak to double digits," with much likely depending on the outcome of weekly-jobless-claims data and wholesale-inflation figures due at 8:30 a.m. Eastern, said Matt Basi, head of U.K. sales trading at CMC Markets UK.

Banks and financials led the way higher, with insurer Prudential PLC rising more than 4% to add to the previous day's storing gain, while index heavyweight HSBC Holdings PLC (HBC) advanced 0.9%.

U.S. stocks ended slightly higher Wednesday, with the Dow (DJI) extending its win streak, making it the longest such run in 16 years.

BNP Paribas SA rose 2.4%, while France's CAC 40 stock index added 0.6% to 3,860.40.

Italy's FTSE MIB stock index bucked recent weakness to rise 1.3%, with shares of Generali up 5.8%.

Generali was up 5.8% after reporting that net profit for the year dropped by around 89%, with the results reflecting large fourth-quarter impairments.

Germany's DAX stock index advanced 0.8% to 8,037.44. Shares of HeidelbergCement AG rose 3.3% after the company said it was aiming for higher revenue and operating income this year, boosted by demand in Asia, Africa and the U.S.

London's FTSE 100 stock index rose 0.3% to 6,500.08.

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