European markets rallied for a second day with the FTSE Eurobloc 100 index, which covers leading euro-zone companies, adding a further 7.20 to 1,061.52.
The FTSE Eurotop 100 index, covering companies both inside and outside monetary union, gained 29.95 to 2,986.96 while the broader-based FTSE Eurotop 300 index rose 15.47 or 1.2 per cent to 1,298.83.
Narrowly-based sectors - each with just one stock - led the performance charts, with distribution up 6.7 per cent and health 5.6 per cent. Computers rose 3 per cent and banks, buoyed by a broker upgrade for Deutsche Bank, rose 2.2 per cent.
Frankfurt unwound early gains towards the close of the session as economic concerns countered a strong start on Wall Street. The Xetra Dax index, which touched a session best of 5,261.58, ended 51.07 higher at 5,226.64.
Banks supplied much of the momentum with broker optimism and European Commission approval for its takeover of Bankers Trust of the US lifting Deutsche Bank 2.47 to 50.76. The day's best level for the shares was 52.28. Dresdner gained 1.55 at 37.80.
SAP, which put out better figures than expected on Wednesday, continued to climb, adding a further 9 at 330 helped by a Deutsche Bank upgrade. Siemens also drew broker plaudits, gaining 2 to 70 after an upgrade at BNP.
The market stayed cool on Deutsche Telekom's plans for a merger with Telecom Italia. The shares, which stood at 41.34 a week ago, slipped a further 78 cents to 35.30.
Paris finished flat at the end of a volatile day, with the CAC-40 advancing an insignificant 0.25 to 4,291.85. A mid-session drop in market heavyweight France Telecom added to the dent made in early gains.
Shares in the French carrier finished 60 cents weaker to 74.15, hurt by news that the planned Deutsche Telekom-Telecom Italia merger was due to go ahead.
