Paris - The Paris Bourse continued its strong recovery on Tuesday on news that the US government was also undertaking radical steps to shore up its banking system.

In mid-morning trade, the benchmark CAC 40 was up 4.87 per cent, to 3,703.48, with 38 of the 40 listed stocks gaining ground.

Industrials again led the way on the hope that measures undertaken by euro-zone countries, Britain and the United States would stimulate the money markets and encourage banks to resume lending.

The biggest winner was French-American telecommunications equipment supplier Alcatel Lucent, which was up 18.5 per cent, to 2.60 euros.

Steel maker Vallourec gained 10.75 per cent, to 124.98 euros, and shares of the struggling car manufacturer Renault rose 8.17 per cent, to 35.21 euros.

On Monday, the CAC 40 recorded its biggest-ever percentage gain, when it ended the day ahead more than 11 per cent after France and other key European countries announced ambitious bank rescue plans. (dpa)