European chipmakers rebounded as investors scrambled for semiconductor stocks, a day after US industry giant Intel spurred a rebound in the Nasdaq Composite index with news it planned to spend $2 billion to boost production.
STMicroelectronics led the charge in Paris with an 8.2 per cent rise to €62.75 after Wednesday's 9 per cent tumble. In Amsterdam, ASM Lithography climbed 3.6 per cent to €37.83 .
Frankfurt's Infineon Technologies gained 3.8 per cent to €66.82 and semiconductor machinery maker Aixtron soared 12.7 per cent to €267.70.
Frankfurt built its rebound on a better showing in high technology issues. The Xetra DAX index climbed 143.99 or 2.1 per cent to 6,978.87 while the Neuer Markt gained 4.5 per cent.
The recovery was led by heavyweight technology and telecommunications stocks, with Deutsche Telekom jumping €4.40 or 7.8 per cent to €61.
Paris closed firmer with strong gains for tech-related stocks as the Nasdaq opened in positive territory once again. The CAC-40 rose 102.5 or 1.7 per cent to 6,129.66.
Top of the rebounding TMTs was television group TF1, up 11.7 per cent at €670 following news that it will be one of the partners in a panEuropean Internet and interactive TV venture.
Bouygues soared 9.8 per cent to €587.50 amid stronger prices for telecoms across Europe. It was also boosted by news that Telecom Italia wants to increase its share in Bouygues Telecom ahead of France's upcoming award of next-generation mobile phone licences.
Amsterdam closed higher as technology and telecom stocks recovered from recent losses, prompted by a strong Nasdaq performance, while old economy stocks dropped. The AEX index rose 0.5 per cent to 645.55.
Trading was hit by a technical problem that caused a break of two hours around midday.
Helsinki posted gains of 7.2 per cent as its telecoms sector staged a powerful rebound from recent losses. The Hex general index finished 1,028.08 higher at 15,243.39. Nokia surged 9.2 per cent to €54.39 and Sonera shot up 9.3 per cent to €45.90.
Stockholm was sharply higher with Ericsson in pole position in the Nasdaq-led rally. The general index finished 199.20 or 3.5 per cent ahead at 5,835.73.
