However, early volumes were thin ahead of the upcoming May bank holiday on Monday. In Frankfurt, the DAX was at 7,312.38, 90.64 points higher and in Paris the CAC 40 was 61.77 points higher at 6,309.63. On Thursday, weaker than expected US growth data and a galloping employment cost index - stoking fears of an early interest rate rise - sent shares tumbling on both sides of the Atlantic. However, a late rally saw the Dow Jones Industrial Average cut its losses to end a fairly modest 57.40 points lower at 10,888.1, while the Nasdaq ended 143.95 points higher at 3,774.04.

Moving on to Asia early Friday, Japan's Nikkei 225 index ended 45.47 points easier at 17,973.70, while Hong Kong's Hang Seng ended 326.43 points higher at 15,519.30. In London, the markets will later be digesting preliminary British first-quarter growth figures. Meanwhile, the FTSE leader board was headed by technology stocks on the back of Nasdaq's gains. Baltimore rose 511 pence to 6,137, while Psion climbed 243 pence to 3,757 and ARM Holdings gained 29.5 pence to 602.5.

The end of the next-generation mobile telephone licence auctions on Thursday, when Vodafone AirTouch won the largest British licence, boosted the market heavyweight. The share was showing a gain of 9.5 pence to 289.25 pence. In Frankfurt, technology stocks and telecoms were in favour on the back of the Nasdaq's gains. Infineon was the strongest gainer, 6.97 per cent higher at 74.40, while Siemens rose 3.25 per cent at 156.52 and Deutsche Telekom rallied three percent to 72.10. Among the most active stocks in Paris were France Telecom which rose 1.30 euros to 164.30 and Alcatel climbed 9.10 euros to 242.50.