At 1034 GMT, the FTSEurofirst 300 index of top European shares was up 0.9 percent, bringing its gains for the year to 5.3 percent. While this year's performance is not as strong as the 14 percent gains seen in 2006 at this time, European shares have rebounded 9.5 percent from a low point in August when concerns over credit market issues were at their peak. France Telecom saw a 6.5 percent increase in its shares following strong results, which also boosted Vodafone by 4 percent and made the telecoms sector the best performer in Europe. ABB, a Swiss engineering group, experienced a 3.7 percent rise after an 86 percent increase in quarterly earnings due to high demand for power generation infrastructure. Meanwhile, French competitor Alstom saw a 5.6 percent increase in its shares after Lehman Brothers raised its target price for the stock. Although earnings growth is expected to slow down this quarter after a strong period, many companies have reported positive numbers. Gerhard Schwarz, head of global equity strategy at Unicredit in Munich, stated that the earnings season could give investors confidence as results have been better than expected. However, he noted a trend of increasing selectivity and mentioned that it is too early to determine if earnings growth in Europe will slow down less than in the United States. Daimler, a German auto group, reported third-quarter earnings that exceeded forecasts, causing its stock to rise by 1.5 percent. In terms of macroeconomic news, U.S. durable goods orders and new home sales data are expected later in the day, with financial markets already factoring in a 100 percent likelihood of a U.S. interest rate cut next week. Additionally, data from the Ifo economic research institute indicated a decrease in its German business climate index in October, as anticipated by the market. In European markets, London's FTSE 100, Frankfurt's DAX, and Paris's CAC-40 all increased by more than 1 percent. European stocks have experienced a volatile period, with a recovery following a 13 percent drop in one month from mid-July. This recovery has been influenced by cuts in the Federal Reserve's discount and main funds rates. However, the market has been sensitive to negative news regarding banks' exposure to credit market issues. U.S. stocks also saw a rebound on Wednesday amid speculation of a potential cut in the discount rate by the Federal Reserve. Despite the Fed not confirming these rumors, there is growing anticipation for further easing measures to alleviate market stress caused by earnings disappointments and concerns about credit market instability. Mergers and acquisitions, which have been a major factor in the ongoing bullish market, continued to drive stock prices higher. Rexel, a French electrical supplier, saw an increase of 8.5 percent in its shares after announcing plans to divide Dutch competitor Hagemeyer with privately held Sonepar, causing Hagemeyer's shares to drop by 3.3 percent. Generali's shares rose by 5.7 percent, following a 2.6 percent increase the day before, after British fund Algebris criticized the Italian insurer's corporate governance and called for changes. Additionally, Spanish bank Santander saw a 1.6 percent increase in its stock price as its nine-month net profit exceeded market expectations.