Shares in Paris extended their rally to 5.5 per cent in five sessions as the CAC-40 index climbed 70.58 to 6,390.87 in robust trading.

Overseas earnings was one of the more obvious talking points of the day with the weakness of the euro putting the focus firmly on stocks with big export or other foreign income potential. Luxury goods were seen as a clear beneficiary of a soft currency and LVMH and Christian Dior shot higher. LVMH gained €27.50 or 6.1 per cent at €476 and Dior €13.10 at €263.10.

Most technology stocks tracked the overnight rally on the Nasdaq.

France Telecom added €4.90 at €168.70, STMicroelectronics €3.20 at €204.30 and Canal Plus €3.60 at €212. Schneider Electric gained €3.20 to €73.40 amid talk that the group's first-quarter sales report, due to be released at the end of the trading day, would contain good news.

Frankfurt added 108.04 at 7,388.55 on the Xetra Dax index with technology stocks making the most of the overnight gains on the Nasdaq. The four leaders all gained ground, although volumes were unexciting. SAP rose €34.30 to €636 and Siemens €4.40 to €156. Epcos added €11.40 or 8.3 per cent at €149.79 and Deutsche Telekom put on €2.46 at €74.20.

Amsterdam pushed ahead by 7.05 to 666.36 on the AEX index with sentiment kept positive by tech-related stocks.

ASM Lithography jumped €3.02 or 8.1 per cent to €40.47 on news from the Far East that chips giant Taiwan Semiconductor had racked up first-quarter earnings well ahead of forecasts.

Milan suffered the indignity of technical problems which delayed the start of trade by almost seven hours and made for a drastically shortened session. Investors were, however, in upbeat mood when business began, although by the close the Mibtel index had turned back to register a loss of 48 at 30,787.

Madrid pulled back from its best levels, but still closed 56.0 higher on the Ibex-35 index at 11,481.5, after the weak opening on Wall Street.

Telecoms heavyweight Telefonica outperformed the broader market, gaining 1.7 per cent to €24.85.