Buoyed by the intervention of major central banks in foreign exchange markets and a strong opening on Wall Street, French shares on Thursday rebounded after straight three days of losses.

In mid-afternoon, the Paris Bourse's benchmark CAC 40 was up 1.22 per cent, at 4,048.75. On Wednesday, the CAC 40 had closed at its lowest level in three years.

The recovery was led by Franco-Belgian bank Dexia, which gained 7.29 per cent to 8.82 euros. Other banks were also strong, with shares of French bank BNP Paribas rising by 3.53 percent to 58.17 euros and Societe Generale up 3.37 per cent, at 56.40 euros.

Declining issues were led by drinks giant Pernod Ricard, which slipped by 5.83 per cent, to 58.38 euros, after reporting results that disappointed analysts.