European stocks jumped in early trading on Thursday, driven by optimism in Asia after news that China is considering pumping money into major banks, while investors awaited comments from the head of the European Central Bank.
The pan-European STOXX 600 index rose 1 percent to 524.56 points by 0710 GMT, approaching its record high of 526.66 points.
The technology and basic resources sectors provided the biggest support to the index, with each rising more than 3 percent.
In contrast, oil stocks were the biggest drag on the index, losing 2.8 percent as oil prices fell on news that top exporter Saudi Arabia might abandon its informal oil price target.
China is considering pumping up to 1 trillion yuan ($142.39 billion) of capital into its major banks in a bid to shore up its struggling economy, a report said. Chinese leaders have also pledged to support the economy with a major interest rate cut.
Luxury goods stocks gave the index a boost during the day, with LVMH and Hermes gaining more than 4.3 percent each.
Several ECB Governing Council members are due to speak later today, with focus on comments by ECB President Christine Lagarde at 1330 GMT.
The Swiss National Bank is expected to cut interest rates by 25 basis points.
H&M shares fell 7.7 percent after the second-largest listed fashion company said it no longer expects to meet its annual profit margin target while reporting a lower-than-expected operating profit for the third quarter.
