European stocks stood broadly firmer at mid-session yesterday, buttressed by well-received results from oil giant Shell and aided by signs that Wall Street would extend its overnight gains.
Analysts said the gains were tentative though ahead of key US data later in the day.
Technology stocks drew strength from Cap Gemini, Europe's largest computer services group, which said it would accelerate its cost-cutting programme, while gains in Lafarge and Saint-Gobain lifted the construction sector.
The market also shrugged off a surprise third quarter loss from Deutsche Bank, Europe's biggest lender, focusing instead on its expectations that results for the full-year would be positive.
"The way the bad news from Deutsche has been handled by the market shows we're not in bad shape right now. There seems to be sentiment change with the market looking at the good news," said Lex Werkheim, a fund manager at Eureffect Asset Management.
"A month ago with the figures Deutsche Bank reported today its stock would have been down about nine or 10 per cent."
By 1150 GMT, the FTSE Eurotop 300 index was up 1.2 per cent at 897 points and is up almost 10 per cent this month, while the narrower DJ Euro Stoxx 50 index rose 1.5 per cent to 2,506 points.
US equity index futures indicated Wall Street would open slightly firmer. On Wednesday, the Dow Jones industrial average finished up 0.7 per cent and the Nasdaq Composite index added two per cent.
Analysts said direction in the US would be determined by the release of third quarter Gross Domestic Product data and the New York and Chicago purchasing managers' indicators.
"Investors are satisified that stocks are no longer over-valued, so a lot now will depend on economic growth," Werkheim said.
Anglo-Dutch oil firm Shell pleased after reporting adjusted third-quarter net profits fell 17 per cent to $2.241 billion, slightly better than expectations.
The stock rose 4.1 per cent, hoisting the sector 2.1 per cent higher and helping lift peers TotalFinaElf up 2.0 per cent and BP 1.1 per cent higher.
Deutsche Bank reported a third-quarter pre-tax loss of 181 million euros ($178 million) from a profit of 363 million a year ago and against a consensus estimate in a Reuters poll for a profit of 282 million euros.
Germany's largest bank blamed a steep rise in loan loss provisions and lower trading revenues, but said it still expected a "satisfying" full-year result. Its stock rose 1.4 per cent.
French-Belgian bank Dexia was under pressure though after warning late on Wednesday that 2002 net income would fall about 10 per cent as it grapples with problems at its Dutch unit.
Dexia, whose shares dropped seven per cent, also said it expected third-quarter profits to be "materially" below the previous quarter.
Among technology stocks, French IT firm Cap Gemini jumped 5.2 per cent on news it was accelerating its restructuring to cut costs in a bid to boost margins, shrugging off disappointing third quarter sales.
French construction materials maker Lafarge led a rise in the construction sector, rising 4.6 per cent after reporting a 15.2 per cent rise in nine-month sales.