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London - European stocks rebounded sharply at the start of trading on Thursday, with sentiment boosted by bright US data, eurozone stimulus hopes and a modest recovery in oil prices.
In initial deals, London's benchmark FTSE 100 index jumped 1.21% to 6 498 points compared with the close on Wednesday.
Frankfurt's DAX 30 climbed 1.32% to 9 643.77 points and the CAC 40 in Paris leapt 1.54% to 4 176.
European equities also bounded higher Wednesday as weak eurozone inflation data sparked speculation the European Central Bank (ECB) will enact additional stimulus measures.
Investor sentiment was bolstered as data showed consumer prices in the eurozone fell in December for the first time since October 2009, at the height of the financial crisis.
The news, raising fears the bloc is about to slip into a deflationary spiral, fuelled expectations the ECB will embark on a vast bond-buying programme known as quantitative easing (QE).
"That eurozone deflation number we saw ... really fired the prospect of some sweeping QE coming out of the European Central Bank," said Trustnet Direct analyst Tony Cross.
Wall St stocks meanwhile jumped Wednesday after solid US economic data, ending a five-day losing streak, with the Dow Jones Industrial Average surging 1.23% to 17 585 points.
Confidence was boosted by minutes from the US Federal Reserve's December meeting suggesting it will not hike interest rates before April.
US shares were also helped by data showing the trade deficit shrinking sharply to its smallest size in nearly a year and the private sector adding a higher-than-expected 241 000 jobs in December.
This week's advances come as welcome relief for global markets, which have been hammered by a slump in oil prices and growing fears that Greece could exit the eurozone as an anti-austerity party looks set to win this month's general election.
