In London, the FTSE 100 index gained 0.77% to 5,465.1 points, in Paris the CAC 40 rose 1.27% to 4,536.49 points, while in Frankfurt the DAX rose 1.5% to 5,090.75 points.

US stocks rose modestly in morning trade, extending recent gains after solid results from computer giant Dell and another dip in crude oil prices bolstered sentiment.

World oil prices fell further, with New York's main contract falling 40 cents to 57.40 dollars per barrel. Earlier yesterday it had hit 56.93 dollars, its lowest point since July 21.

In Frankfurt, banking group HypoVereinsbank led the gainers, adding 3.5% to 26.03 euros, after releasing strong third-quarter results on Thursday.

Auto giant DaimlerChrysler, boosted already by falling fuel prices, advanced 1.64% to 42.65 euros after agreeing to sell its remaining 12.4% stake in Mitsubishi Motors.

Heading lower however was German insurance giant Allianz, which dropped 0.88% to 119.50 euros as investors deemed its latest quarterly results disappointing.

Allianz said that third-quarter net profit rose by 70% to 794mn euros compared with the same three-month period a year earlier. At operating level, however, earnings slipped to 1.723bn euros from 1.869bn.

In Asia, Tokyo's Nikkei-225 index yesterday closed up 0.53% at 14,155.06 points, the highest level for more than four years, supported by stronger-than-expected economic growth figures and a positive lead from Wall Street, dealers said.

Japan's gross domestic product (GDP) grew 0.4% in the three months to September quarter-on-quarter, down from the 0.8% pace in the previous three-month period but above the market consensus of 0.3%.

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