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By 08:05 BST, the pan-European FTSEurofirst 300 was 0.6 per cent higher on of 1,006.33 points - a one-and-a-half-week high, Reuters reports.
The climb was led by stronger banking shares, with gains of between one per cent and 1.4 per cent recorded by Banco Santander, UniCredit and Societe Generale.
Over the past two sessions the index has rallied by 5.3 per cent but a technical analyst for Aurel BGC warned this trend may not continue.
"This recovery rally could soon hit resistance on the upside. This week's low point wasn't the capitulation point, so the risk is still on the downside," Alexandre Le Drogoff was quoted as saying.
In London, the FTSE 100 was 0.25 per cent higher by 09:17 BST, putting it on 5,208.18 points.
Posted by Greg Secker
