The pan-European STOXX 600 index was up 2.5% at 0712 GMT, shrugging off data showing China suffered its worst economic contraction in almost three decades as the pandemic crushed business activity.
All the major European sub-sectors were trading higher, with mining stocks surging 4.1% on the back of higher commodity prices.
The benchmark STOXX 600 has now recovered about 24% since hitting an eight-year low in March, powered by a raft of global stimulus and tentative signs the pandemic was peaking in the worst hit parts of the continent.
Lifting the mood further on Friday, a report detailed encouraging partial data from trials of U.S. drugmaker Gilead Sciences Inc's experimental drug remdesivir in severe COVID-19 patients.
Nokia jumped 4% on a report that it was working with an investment bank to defend itself from a hostile takeover.