Europe is popping

European stock markets are shooting higher on Friday morning.

Here's a snapshot at 8.33 a.m. BST (3.33 a.m. ET):

UK FTSE 100: +1.90%

German DAX: +2.35%

French CAC 40: +2.56%

Euro Stoxx 50: +2.42%

The surge is down to a rebound for carmakers and a signal from US Federal Reserve chair Janet Yellen that we'll get a interest rate rise in the US by the end of the year.

SpreadEx's financial analyst Connor Campbell says in an email this morning:

There are likely a few factors contributing to the positive mood this morning. In regards to the week's headline-hogging story, the latest rebound from the auto-stocks, with Volkswagen, Porsche, Daimler and BMW all posting decent gains, has helped with Friday's shift in sentiment, even if beyond the markets the sector may still be in trouble.

More important was Janet Yellen's speech at the University of Massachusetts last night. The Fed chair appeared to provide a bit of much needed clarity, claiming that he majority of the Federal Open Market Committee, including Yellen, expect a 2015 lift-off. This leaves the announcement of a rate-hike in October or December on the cards, providing the kind of future anchoring event for the markets they have been sorely lacking this week.

After a wild ride yesterday, Volkswagen shares are up 2.6% - for now at least.