AlQa'dah 8, 1432, Oct 6, 2011, SPA -- European equities extended the previous session's strong gains on Thursday on hopes officials will intensify their efforts to support Europe's financial sector, while latest data raised optimism the U.S. economy might avoid slipping into recession, Reuters reported. At 0705 GMT, the FTSEurofirst 300 index of top European shares was up 0.6 percent at 921.68 points after surging 3.3 percent in the previous session. "Significant talk of bank recapitalisation is certainly the driving factor behind positive sentiment," said Keith Bowman, equity analyst at Hargreaves Lansdown. "But there is still a lot of uncertainty. Speed is of the essence and that would make a difference. If we see another week or so go by without some significant step forward, that is likely to inject nerves back into the markets." Banks have recovered after European finance ministers agreed to safeguard banks and German Chancellor Angela Merkel urged on Wednesday a quick decision on bank capitalisation in Europe, saying "time is of the essence" and her government was ready to capitalise its banks if needed. The STOXX Europe 600 banking index rose 1.3 percent to feature among the top gainers, but is still down 33 percent this year on concerns about the sector's exposure to debt-stricken countries such as Greece, which could default on its debt obligations.
