European shares rose in early trade today as equity markets continued to recover from a recent slump sparked by fears over a credit crunch.
Earlier this morning, the pan-European FTSEurofirst 300 index was up 0.9 per cent, at 1,519.76, rising for the fifth session in a row.
A $2 billion injection from Bank of America into Countrywide Financial Corp, the largest US mortgage lender, to help it shore up its finances helped ease market fears over the potential impact from the turmoil in the US subprime market.
The news buoyed recently hammered shares of financial institutions, such as British mortgage bank Northern Rock, which rose by nearly 5 per cent and was also lifted by bid talk, traders said.
Around Europe, Germany's DAX index was up 1 per cent, while both Britain's FTSE 100 index and France's CAC 40 gained 1.4 per cent.