U.S. and European stock markets rose sharply on Thursday, rebounding from steep losses the previous day as buyers drew encouragement from a better-than-expected U.S. jobs report.

U.S. stock indexes were more than four percent in afternoon trading, while major indexes in London, Paris and Frankfurt closed up about three percent. It was the latest in a series of global markets swings that saw markets plunge on Monday, rebound on Tuesday and slump again on Wednesday.

Analysts say stocks got a boost Thursday from a U.S. government report that said first-time claims for jobless benefits fell to a four-month low in the past week. Many investors interpreted that as good news for the U.S. economy following an unprecedented downgrade of the U.S. sovereign debt rating at the end of the previous week. That downgrade triggered triggered Monday's sell-off.

U.S. President Barack Obama said “wild swings” in stock markets were making many Americans nervous and affecting their savings. Speaking Thursday on a visit to the Midwestern U.S. state of Michigan, he attributed the volatility partly to factors that he said are beyond U.S. control, such as Europe's financial turmoil.

Mr. Obama also said partisan politics in Washington has hampered the U.S. ability to deal with such challenges.

Thursday's rally on Wall Street helped European stock markets reverse earlier session declines. Shares of major French banks closed higher after French central bank chief Christian Noyer said the industry is financially solid. Societe General shares rose almost four percent following Wednesday's near 15-percent plunge on rumors that it was in financial trouble.

The bank's CEO Frederic Oudea dismissed the rumors as baseless. French securities regulator AMF warned of penalties for anyone profiting from the spread of what it called “unfounded rumors” about French banks. Many investors had expressed concern about the banks' exposure to the debt of troubled euro zone economies.

British Treasury chief George Osborne said the global economy is facing its most dangerous time since the 2008 financial crisis. In a speech to the British parliament, he said the recovery from that crisis will take longer and be harder than had been hoped.

Asian markets fell earlier in the day.