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Paris - European shares rose early on Monday, building on the previous session's rebound in the wake of stronger-than-expected US jobs figures which boosted stock markets worldwide.
German equities led the gains, with the DAX index up 1.3%. The Frankfurt bourse, closed on Friday for a public holiday, played catch up.
At 09:49, the FTSEurofirst 300 index of top European shares was up 0.6% at 1 355.39 points in a broad-based rally.
Shares in exporters such as Airbus and Daimler were among the top gainers, getting a lift from the euro's slide against the dollar following the US jobs data.
"The steady drop in the euro is boosting sentiment among equity investors in Europe. It won't have an immediate impact on the next earnings season, but people are starting to price it in as a tailwind for the coming quarters," said Alexandre Baradez, chief market analyst at IG France.
"In the short term, however, the market remains driven by what the central banks say about their monetary policies, with still a lot of question marks on the timing for the Fed's first rate hike and the prospect of a quantitative easing programme from the ECB. So we're expecting some turbulence on the market in the next little while," he added.
The recent fall in the euro to $1.25 against the greenback - down 11% since early May - has fueled hopes of a boost to the region's corporate earnings.
After a strong single currency gave exporters a major headache in the first part of the year, the recent slide should give a lift of 3% to 6% to corporate earnings, according to analysts and fund managers.
For Airbus, one of Europe's most dollar-sensitive companies, a 10-cent move in the euro against the dollar translates into a €1bn swing in profits at the operating level.
Around Europe, UK's FTSE 100 index was up 0.4%, while France's CAC 40 and Italy's FTSE MIB were both up 0.7%.
Bucking the trend, shares in both BHP Billiton and in rival Rio Tinto dipped 0.1% after BHP said it aimed to cut its iron ore production costs by more than 25% and squeeze more tonnes from its mines.
Iron ore prices have sharply dropped this year, dragging down mining shares.
On the macro front on Monday, data showed German industrial orders posted their biggest drop in August since 2009 due to the subdued eurozone economy and uncertainty caused by crises abroad.
The data fuelled expectations that the European Central Bank could launch a US-style quantitative easing programme in the coming quarters to help prop up the eurozone economy.
