European stocks advanced early today to mirror a rise in US and Asian shares as worries over the health of the US economy dissipated.
The session was expected to be quiet, with UK markets closed for the day.
Earlier this morning, the pan-European FTSEurofirst 300 index was up 0.2 per cent, at 1,517.70 points, rising for the seventh session in a row.
Europe's benchmark index has been rallying since August 17th, bouncing back after a sharp five-week correction spurred by worries that a rising number of defaults in the US subprime mortgage market could translate into big losses for financial institutions and dampen economic growth.
Around Europe, Germany's DAX index was up 0.4 per cent, while France's CAC 40 gained 0.6 per cent.
The FTSEurofirst 300 index is up 2.4 per cent on the year. The index dropped nearly 13 per cent between July 13th and August 17th, on worries over the deterioration of credit conditions in the wake of the crisis in the US subprime market.
The US Federal Reserve cut its discount rate on August 17th in an emergency move aimed to calm turbulent markets. The Federal Bank is expected to lower its benchmark rate in mid-September.