LONDON (AFP) - Europe's main stock markets continued their recovery in early trading on Friday following steep losses earlier in the week caused by fears of a US recession.
London's FTSE 100 index of leading shares jumped 1.35 percent to reach 5,955.20 points shortly after the market opened. Frankfurt's DAX 30 climbed by 2.30 percent to 6,978.28 points and in Paris the CAC 40 rose rallied 1.39 percent to 4,983.53.
Europe's main stock markets had closed sharply higher on Thursday -- with gains of between 4.75 and 6.04 percent -- despite a stunning near five-billion-euro (7.15 billion dollar) fraud at Societe Generale stinging investor sentiment.
Japanese share prices closed up 4.10 percent on Friday, with a three-day rebound picking up steam after US political leaders reached a deal aimed at warding off recession, dealers said.
The White House and leaders in the House of Representatives, led by the rival Democratic party, reached a surprisingly quick deal Thursday aimed at shoring up the US economy wracked by housing sector turmoil.
Earlier this week the Federal Reserve had responded to severe market unrest by carrying out an emergency cut to US interest rates. The US central bank took the unprecedented step of slashing its benchmark rate by 75 basis points to leave borrowing costs at 3.50 percent.
The Fed is expected to cut rates again at its regular two-day meeting starting Tuesday. US President George W. Bush is also sure to address economic issues in his annual State of the Union address on Monday.
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