European shares finished the session one percent higher though trading was thin and most major long-term investors have already closed their books for the rest of the year.
The financial sector was strong after recent sharp falls.
Analysts said there was a feeling the sell off prompted by events in Dubai, Greece and Spain had been overdone.
Food producers were popular. Nestle, Unilever and Danone all gained.
Miners came under pressure as copper headed for its biggest weekly drop since September.
Anglo American, Antofagasta, BHP Billiton, Rio Tinto and Xstrata were all down.
The dollar is steady .. having gained around two percent over the past week against a basket of currencies and demand for government bonds slipped as investors embraced risk again.