PARIS - European stock markets opened in green on Thursday extending last session's rebound as investors welcomed eurozone policymakers' steps to beef up banks and help strengthening the region's financial institutions.

In Paris, the CAC 40 grew by 2.44 percent to 3,046 points at GMT 1031. At early trading banks were the star performers after registering 4.22-percent rise driven up by high traded shares of the country's largest banks of BNP Paribas, Societe Generale and Credit Agricole. Their stocks were up by 6.78 percent, 5.10 percent and 4.22 percent respectively.

In neighbor markets, investors remain optimistic about concrete moves to shield the area from a financial system collapse. London gained 1.6 percent. Index of Germany, Europe power house rose by 1.97 percent. In Milan, stocks jumped by 1.88 percent despite Italy's rating downgrade.

The index of the eurozone, Euro Stoxx 50 was up by 2 percent.

On Wednesday, German Chancellor Angela Merkel noted Berlin's readiness to recapitalize its banks if needed, backing European finance ministers' pledges to safeguard banks amid rising worries about a Greek default.

"Finance ministers' decision to bailout banks if necessary and good US data which showed that economic activities still growing, sent up stocks. Investors are feeling that a solution to get out from the crisis become closer," Charlotte Com, an analyst at BGC Aurel told Xinhua.

"But, wide variations are expected in the coming days depending on which kind of news will have," she added.

The outcome of UK and European central bank meetings are among investors' focus of attention along with economic data of Germany and the United States to be issued later in the afternoon.