European stock markets opened higher on Thursday following Wednesday's recovery in the US.
The FTSE 100 index was up 0.9% in early trade, the Dax rose 0.4% in Frankfurt and the Cac rose 1.1% in Paris.
On Wall Street, the Dow Jones closed 1.9% higher after comments from Federal Reserve boss Ben Bernanke lifted hopes of a US interest rate cut.
Asian stock markets also rose on the news, with the Nikkei in Tokyo closing up 0.9% at 16,153.8.
The US Federal Reserve chief said he was "prepared to act as needed" to ensure credit market troubles did not adversely affect the economy.
The Federal Reserve's interest-rate setters will meet on 18 September when they will consider whether to match their recent cut in the rate at which they lend to banks with a cut in the benchmark Federal Funds rate.
Wednesday's rises on Wall Street meant that New York shares had clawed back almost all of their losses from Tuesday.
These falls were triggered by warnings about the profitability of some of the world's biggest banks with financial exposure to the troubled sub-prime mortgage sector.