European shares rose by midday on Thursday as banks, miners and oils rallied on hopes that a global economic downturn would be shortened by the Federal Reserve's plans for large scale purchases of government bonds, according to Reuters. At 1148 GMT, the FTSEurofirst 300 index of top European shares was up 1.8 percent at 723.35 points, with financials adding most points to the index, while oils and miners tracked sharp rises in crude and metals. The Federal Reserve on Wednesday vowed to pump an additional $1 trillion into the U.S. economy in an aggressive bid to battle a deep recession, partly by large-scale buying of Treasuries not seen since the 1960s. The European Central Bank, which has lagged its peers in cutting borrowing costs, said that there was no specific lower limit for its rates. Analysts said the Fed move would spark hopes that a global economic downturn would be shortened, but it was early days. "This is a big step, but bottoming out is a process -- it's way too early to say this is the turning point," said Philippe Gijsels, strategist at Fortis in Brussels. Banks added most points to the index. BNP Paribas, Banco Santander, UBS, Barclays, HSBC, Credit Suisse and UniCredit rose between 4 and 15 percent. "At the macro level this is more stimulus for the economy, which is especially good for financials, and the Fed move puts more pressure on the ECB to cut rates, which will also be a positive for the sector," said Bernard McAlinden, strategist at NCB Stockbrokers in Dublin. Across Europe, Britain's FTSE 100, Germany's DAX and France's CAC-40 were up between 0.5 and 1.3 percent.
