(MENAFN- AFP) European stock markets rallied on Thursday, rebounding slightly from heavy recent losses linked to China's weakening of its currency.
London's benchmark FTSE 100 index climbed 0.62 percent to stand at 6,611.95 points in late morning deals.
Frankfurt's DAX 30 jumped 1.45 percent to 11,081.75 points and the CAC 40 in Paris advanced 1.58 percent to 5,003.40 compared with Wednesday's close.
The euro fell to $1.1115 from $1.1159 late in New York on Wednesday.
"So fears of Chinese economic meltdown appear to have been allayed for the time being, evident in a broad stock market rally," said Augustin Eden, research analyst at Accendo Markets.
Europe's main indices had slumped over the past two days, with Frankfurt and Paris both shedding more than three percent on Wednesday.
China weakened its currency for the third consecutive day Thursday, but financial markets that had been shaken by the earlier surprise devaluation took heart as authorities pledged not to let the yuan plummet.
The central bank trimmed the reference rate for the yuan -- also known as the renminbi -- by 1.11 percent to 6.4010 yuan against the dollar, the China Foreign Exchange Trade System said, from the previous day's 6.3306.
Analysts have viewed the action as a way for China to both boost exports by making its goods cheaper abroad and push economic reforms.
It comes after recent economic data out of China has reinforced concerns that growth is slowing in the world's second largest economy.
Elsewhere on Thursday, Athens' main stocks index was down 0.18 percent at 690.19 points as official data showed that Greece's economy expanded by 0.8 percent in the second quarter of 2015, with the country escaping recession in the first quarter as GDP remained flat.
According to the new figures, the Greek economy posted zero growth in the first quarter of the year after having contracted 0.2 percent in the last quarter of 2014 -- thus averting two periods of decline that would constitute a recession.
The figures showed second quarter growth up 1.4 percent compared to the same period the previous year.
The data comes as Greek lawmakers hold an emergency parliament session Thursday for a crucial vote on ratifying a hurriedly-concluded bailout deal, but Germany -- Europe's defacto paymaster -- has cast doubt on the agreement.
Greece and its creditors are under pressure to finalise the 85 billion euro ($94.8 billion) deal by August 20 when Athens must repay some 3.4 billion euros to the European Central Bank.
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