European markets rebound after US rally

European stock markets surged in early trade today after New York staged its biggest one-day rally since 1987 to snapping back…

European stock markets surged in early trade today after New York staged its biggest one-day rally since 1987 to snapping back sharply after days of falls.

The FTSE Eurotop 300 index of pan-European blue chips added 3.6 per cent in the first 15 minutes of trade, and the narrower DJ Euro Stoxx 50 index climbed 4.5 per cent.

"People will be thinking that if they don't get in now, they won't be able to get in at all," one London-based European equities trader said. "This looks like a very good time to make a bit of money. What happens later in the day is anyone's guess. It will again depend largely on what happens in the US".

The Dow Jones industrial average soared 6.35 per cent in a volatile market yesterday after earlier dropping 2 per cent. Volume was extremely heavy with nearly three billion shares changing hands.

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The broader Standard & Poor's 500 Index added 5.73 per cent and the tech-laden Nasdaq Composite climbed 4.98 per cent.

Investors will sift through a slew of results on the busiest day in the European second-quarter earnings diary. Among companies reporting are French telecoms equipment maker Alcatel, drugs major AstraZeneca, European aerospace giant EADS, Germany's second-biggest bank HVB Group, Dutch airline KLM and French carmaker Renault.

But sceptics will dismiss Wall Street's rebound as little more than a startling short-covering rally in an otherwise long-term bear market.