European bourses posted their biggest weekly gains since June after stronger-than-expected data from the US allayed fears of recession in the world’s largest economy. Strong durable goods orders and new home sales showed the US economy was holding up well amid recent market volatility.

The FTSE Eurofirst 300 rose 2.8 per cent on the week to 1,514.43. Germany’s Xetra Dax added 1.8 per cent to 7,507.27 while in Paris, the CAC 40 gained 3.8 per cent to 5,569.38.