* FTSEurofirst 300 up 0.6 percent

* U.S. data and BoE, ECB rate decisions support stocks

* Oils, financials and retailers among top gainers

By Atul Prakash

LONDON, Nov 5 (Reuters) - European shares set a one-week closing high on Thursday after data showed new claims for U.S. jobless aid fell to a 10-month low and business productivity in the third quarter grew at the fastest pace in six years.

Investors risk appetite grew, with the VDAX-NEW volatility index down 4 percent. The lower the volatility index, based on sell and buy options on Frankfurt's top-30 stocks <0#.GDAXI>, the higher is investors' desire for risky assets such as equities.

The FTSEurofirst 300 index of top European shares ended up 0.6 percent at 990.53 points -- the highest close since Oct. 29 -- after an intraday low at 969.74.

Retailers were among top gainers, led by Delhaize (DELB.BR: Quote, Profile, Research) which gained 5 percent after the Belgian group raised its 2009 operating profit forecast and reassured about its ability to cope with tough trading conditions in its main U.S. market.