Across the Atlantic, Microsoft and Sun Microsystems had both posted expectation-busting third-quarter result late Wednesday, while Texas Instruments posted earnings in line with expectations. In the 11-nation euro zone, the Euro Stoxx 50 index clawed back 1.68 percent to 4,737.18 points.

The CAC 40 index climbed 1.16 per cent back above the 6,000-point mark to 6,005.96 points in Paris. Investors in Frankfurt shrugged off below-expectation results from software giant SAP. The Dax index added 0.86 percent to 6,538.76 points.

In London, gains were more muted despite fresh figures on Thursday showing a sharp increase in British high street activity in September. The FTSE index of 100 leading shares edged up 0.59 per cent to 6,184.2 points. The mood in Europe was buoyed by an unexpected rebound on Wall Street on Wednesday after the US markets plunged quickly into the red after the opening bell.

The technology-rich Nasdaq was down over five percent at one point, while the Dow Jones Industrial Average slipped below the psychological barrier of 10,000. However, the Nasdaq had pared its loss to 1.32 per cent and the Dow Jones Industrial Average to 1.14 percent by the closing bell. The Dow nevertheless closed below 10,000 for the first time since March 14. Asian markets remained on edge after the show of volatility on Wall Street.

The Nikkei-225 index dropped 0.4 per cent in Tokyo, while the Hang Seng index slipped 0.2 per cent in Hong Kong. Telecom and technology stocks led the rebound in the wake of the Nokia results. Nokia itself was up 17 per cent at 41.65 euros, driving Finland's leading market index up 12 per cent. In London, Baltimore Technologies jumped 7.8 per cent to 479 pence, while Bookham Technology climbed 6.3 per cent to 2,467 pence.

Market heavyweight Vodafone was up 3.2 per cent at 261.25 pence. Railtrack was in the spotlight again after the board declined to accept the resignation of Chief executive Gerald Corbett in the wake of the Hatfield rail disaster. The stock rose 0.65 per cent to 1,013 pence. In Frankfurt, industrial giant Siemens gained six per cent to 136.76 euros, electronic components maker Epcos climbed 3.7 per cent to 82.80 euros, while semi-conductor maker Infineon added 3.2 per cent to 47.99 euros. But SAP, the leading world provider of industrial software, tumbled 4.68 percent to 232 euros after announcing a 96-per cent increase in third-quarter results that was nonetheless below expectations.

In Paris, mobile phone supplier Sagem jumped 5.5 per cent to 189.9 euros, while rival Alcatel added 2.8 per cent to 71.45 euros.