European stocks rose after the decline of investor concerns about the banking sector

European stocks continued to recover for the second consecutive session on Friday, as measures taken by the United States and Europe to support banks calmed fears of an imminent collapse, but the European index was on track to record a decline for the second week in a row.

The Stoxx 600 index rose 0.8 percent by 0805 GMT, as the banking index rose 1.3 percent, after a $ 30 billion bailout by large US banks for the embattled First Republic.

The package came less than a day after Swiss bank Credit Suisse secured an emergency loan from the central bank of up to $54 billion to support liquidity.

Credit Suisse shares were up 1.8 percent in early trade, after jumping 19 percent on Thursday.

The Spanish and Italian indexes, which are dominated by banks, rose 0.7% and 1.0%, respectively, but they are on their way to incur big weekly losses.

The Stoxx 600 index ended Thursday up 1.2 percent after volatile transactions, as the rescue package obtained by Credit Suisse allayed concerns about the European Central Bank raising interest rates by 50 basis points.