Frankfurt rallied 2 per cent on the Xetra DAX to partly restore a threeday decline of 5.5 per cent. The benchmark finished 138.62 higher at 7,259.48 after a rapid recovery from a session low 7,013.70 following the steadier early tone in New York.
Tech leaders, hit badly on Wednesday by the shakeout in the Nasdaq, drove higher in heavy trading. Epcos rose €3 to €135 and SAP €18 to €604. Deutsche Telekom, weak lately ahead of next month's sale of state shares, rebounded €4.39 or 7.2 per cent to €65.20.
Paris drew strength from the positive US economic data which fed a rebound in interest-rate sensitive technology shares, despite a blow to the bourse's own technology which broke down during a hailstorm. Trading was interrupted for 20 minutes in the afternoon.
TMT gainers included a rebounding France Telecom, up 4.8 per cent or €6.90 to €151.40, STMicroelectronics, up 4.1 per cent or €2.70 to €68.45 and Cap Gemini, up 6.6 per cent or €12.90 to €209.
Amsterdam rose 1.33 to 658.83 on the AEX index after strong gains for basic economy stocks, notably oil giant Royal Dutch. Shares in Royal Dutch jumped €1.45 to €66.30 after an upgrade at Deutsche Bank which moved to a "strong buy". Financials stayed weak in spite of a firm "no-change" signal on interest rates from the European Central Bank. ABN-Amro lost 37 cents at €22.03 and Aegon €1.30 at €79.50.
Madrid closed higher as the US retail figures reduced fears over interest rates. The Ibex 35 index added 204 to 11,036.3, a rise of 1.9 per cent. Telefonica reversed its early losses and closed 2.3 per cent higher at €23.38, having finally shaken off the gloom surrounding its failed merger with KPN of the Netherlands. Helsinki overcame morning losses as Nokia and Sonera bounced back, in line with a firmer opening on the Nasdaq market.
Shares in Zurich came into their own as defensive plays, as foreign investors, disenchanted with the technology sector, targeted old-economy favourites from the start. The SMI index pressed 119.4 ahead to close at a high for the year of 7,706.9.
