More gains for the dollar plus some high-profile corporate news sent Frankfurt sharply higher, the Xetra DAX index rising 168.92 or 3.6 per cent to 4,878.24.
Siemens provided most of the upside drive, leaping 12.60 deutschmarks or 12.3 per cent to DM114.65 on ambitious restructuring plans that take in disposals, plus the eventual flotation of the group's loss-making microchips arm.
Banks were strong before today's meeting of the Bundesbank council, which sets interest rate policy. Deutsche Bank added DM2.75 at DM104.75, Dresdner DM2.53 at DM68.53 and Commerzbank put on DM1.89 to DM50.90.
Paris swung higher in good volumes with a rally for oil stocks, further gains for the banks and a bounce for defence counters boosting the CAC-40 index 100.5 to 3,684.16.
Hopes for a further round of European interest rates cuts following today's meeting of the Bundesbank council spurred banks. BNP added 11.50 francs at Ffr377.50 and Paribas Ffr17 at Ffr452. CCF rose Ffr26.10 or 6.7 per cent to Ffr414.80 and So- ciete Generale Ffr34 to Ffr785.
A better day for international oil prices sent the oil stocks smartly ahead. Amsterdam was spurred by strong performances among financials and at Philips. The AEX index rose 28.04 or 2.7 per cent to 1,062.44.
Unilever gained 4.20 guilders at Fl147.90 on talks of a foreign acquisition and before nine-month results due out tomorrow. KLM settled slightly lower in the wake of disappointing six-month results. Philips surged Fl8.50 or 8 per cent to Fl114.50. In the financial sector, ABN-Amro rose Fl2.20 to Fl39.30. Milan moved ahead alongside other bourses, with the Mibtel up 605 or 3 per cent to 20,809.
