European stocks streaked ahead yesterday afternoon after a welter of data showed the US economy was recovering well, helping bourses extend their utility- and telecom-led gains.
By 1513 GMT, the FTSE Eurotop 300 index was up 1.7 per cent at 928 points, with the narrower DJ Euro Stoxx 50 index 2.6 per cent ahead at 2,633 points.
France Telecom stormed 10 per cent higher to e16.30 as its majority owner, the French state, was reported to be ready to pump nine billion euros into the debt-laden group to put off a risky capital increase until next year.
Investors were cheered by a drop in US jobless claims to their lowest level in two years, with US personal spending rising and the University of Michigan's consumer sentiment index for November halting a five-month slide.
The Chicago purchasing management's index for November jumped to 54.3 from 45.9 in October, signalling expansion in the US industrial heartland.
"They're very good numbers. the US reocvery's heartbeat just picked up quite dramnatically. They provide more evidence that the US economy is coming out of casualty and into the recovery ward," said Bear Stearns economist David Brown.
"They are great numbers for stocks and should provide a great boost ahead of Thanksgiving," Brown added.
The US data helped European carmaker shares spring to life as many of them have substantial sales in the United States. German-US auto giant DaimlerChrysler gained 3.2 per cent to e35.20.
On Wall Street, the Dow Jones industrial average was up 1.6 per cent at 8,820 points, with the Nasdaq Composite two per cent higher at 1,476 points.
Telecoms and utilities were the day's bright spots. Spanish power company Union Fenosa jumped 7.3 per cent to e12.80.
A source told Reuters that Italy's Enel was interested in Spain's number-three electric company and was in talks with Spanish bank Santander Central Hispano, Union Fenosa's top shareholder.
Santander denied it was in talks with Enel or anyone else about selling its stake in Fenosa.
The DJ Stoxx utility index was up 2.8 per cent, as talk of the Fenosa bid rippled through the sector. Germany utility powerhouse E.ON rose six per cent to e44.71.
Oil stocks were among the top gainers as crude oil prices were bolstered by news that industry data showed a surprise fall in US crude inventory levels last week.
European sector leader BP was up 3.3 per cent at 413-1/2 pence.
The Federal Reserve's "beige book" of anecdotal evidence of economic activity is due at 1700 GMT.