Technology titan Nokia helped European shares snap a two-day losing streak yesterday, lifting indices back towards last week's 8-1/2 month highs despite doubt over the durability of economic recovery.
A debt debut by German sportswear maker Adidas-Salomon was well received, but Deutsche Telekom fell after saying it would lose a fifth of German local calls by the end of 2003 as the market opens up to competition.
Dutch retailer Vendex jumped eight per cent to 10.32 euros as the group's biggest shareholder formed a lobby to persuade management to sell assets or buy back shares.
AstraZeneca bounced after a leading US investment fund increased its stake in the Anglo-Swedish drug firm.
Some investors were keeping their powder dry ahead of earnings from global reinsurance leader Munich Re today, when Benelux financial group Fortis and European tourism leader TUI also report.
By 1543 GMT, the FTSE Eurotop 300 index was up 0.75 per cent at 902 points, with advancing issues eclipsing decliners by more than two-to-one with a steady 2.4 billion euros of trades transacted.
European shares were partly playing catch-up with a late Wall Street spurt on Tuesday, while investors were also unsure about their next step after last week's advance.
"You are seeing some decent macro data, but how much of that is already in the share price?" said Michael Macphee of Baillie Gifford fund.
"There is also a lot of uncertainty, and a wide range of possible outcomes down the line. A lot of people are coming back from holiday and struggling to understand what's going on."
Since a six-year market low in March investors have been ploughing cash into economy-sensitive cyclicals and technology shares, banking on a recovery to lift demand, though how strong the rebound will be remains unclear.
The International Monetary Fund cut its global growth forecast for this year to 3.1 per cent from 3.2 per cent, and warned of risks to an upturn such as the US budget and current account deficits, a draft report obtained by Reuters showed.
"The market may be slightly over-bought in the short term and ultimately you need the topline to come through, but the benefit of low interest rates and low corporate bond spreads means you can wait longer for that to happen," Macphee said.
Finnish handset maker Nokia rose 4.8 per cent to 14.67 euros in Helsinki, moving in line with its US listing which rallied late on Tuesday, but also helped by news from the company.