LONDON: Europe's stock markets steadied at the open on Thursday, after surging the previous day as major central banks pumped liquidity into the global financial system to avert another credit crunch.
In initial trade, London's benchmark FTSE 100 index added 0.27 percent to 5,520.13 points, while Frankfurt's DAX 30 eased 0.14 percent to 6,080.48 points and in Paris the CAC 40 dipped 0.05 percent to 3,153.18.
Global markets had rocketed on Wednesday as six major central banks, led by the US Federal Reserve, pumped liquidity into the financial system to prevent a second credit crunch linked to the eurozone debt crisis.
In a surprise move on Wednesday the central banks of the United States, the eurozone, Britain, Japan, Canada and Switzerland said they would cut the cost of providing dollars to banks.
In response, London had leapt 31.6 percent, Frankfurt surged by 4.98 percent and Paris soared 4.22 percent on Wednesday.
Wall Street shot four percent higher overnight after the central banks joined hands to ensure commercial banks would not be undermined by market worries over the eurozone crisis.
Asian markets also jumped on Thursday after the coordinated action to boost liquidity for the gummed-up financial system, and as China also cut the amount of cash lenders must hold in reserve.
European banks have for months found difficulty raising dollars on the markets after US investment funds pulled out over concerns about the eurozone debt crisis.
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