European shares rose on Thursday, halting two-days of losses, after the U.S. Federal Reserve said interest rates would remain low for a considerably longer period than expected and it was ready to offer additional stimulus to boost economic growth.
Cyclical stocks, whose earnings are supported when economic growth is strong, were the star performers, with the STOXX Europe 600 Basic Resources index <.SXPP> rising 1.3 percent.
We are definitely seeing risk-on at the moment, markets have got excited as economic growth helps bring down debt, said Louise Cooper, markets analyst at BGC Partners.
But it tells us an awful lot about the state of the economy in the United States. If the Fed is telling us interest rates are going to stay low the recovery must be fragile, she added about the statement released after the Wednesday European close.
At 8:03 a.m., the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.4 percent at 1,043.26 points.
(Reporting by Joanne Frearson)