The half-point interest rate cut in Europe had an uplifting effect on technology, media and telecom stocks.

France Telecom, which announced details of its €5 billion bond, jumped almost 8 per cent, and Telef≤nica and Deutsche Telekom both added more than 5 per cent.

Technology shares were led higher in France by Dassault Systemes, up 8.4 per cent to €53.10 and in Germany by Infineon, up more than 7 per cent to 421.70.

French media shares were steeply up, with Thomson Multimedia gaining 5.8 per cent to €30.90, Lagardere 7.5 per cent to €44.73 and Havas Advertising 4 per cent to €9.01.

The rises were broadly based across other sectors. Airline stocks stayed in demand as the buyers, attracted by a hint of improving fundamentals, swung back into a sector perceived as being just possibly oversold.

KLM jumped 13 per cent to €11.40. Lufthansa, most brokers' top pick in the sector, rose 6.8 per cent to €13.80 for a two-day gain of 17 per cent. Air France added 7.7 per cent at €14.

Improving bond and equity markets plus market talk of a demand-led boost for premiums continued to support insurance stocks. AXA added 4.8 per cent at €28.30 to extend its gains over the past seven sessions to more than 15 per cent. ING rose 5.3 per cent to €31.65, and Munich Re and Allianz gained 1.8 per cent to €324 and 2.7 per cent to €285.10 respectively.

Heavy engineer ABB continued to rally helped by recent upbeat contract news and hopes that the group may win a $428 million airport deal in Senegal. The stock, SFr44.50 at the start of the year, rose 5.6 per cent to SFr16.10 to extend gains over the past month to more than 70 per cent.

Carmakers were also higher but BMW, up more than 5 per cent on Wednesday following stronger-than-expected figures, could make no further headway.