European stocks rose in morning trade, adding to the previous session's recovery rally as mounting expectation of further stimulus measures from central banks prompted short sellers to cash in profits and bargain hunters to start looking at battered shares.

On the macro front, investors awaited the release of the Thomson Reuters/University of Michigan Surveys of Consumers final May consumer sentiment index, due at 1355 GMT. Economists in a Reuters survey expect a reading of 77.8, a repeat of the preliminary May reading.

Morgan Stanley (MS.N) will adjust thousands of trades to ensure outstanding limit orders to sell will be filled at no more than $42.99 a share for Facebook (FB.O) stock from last Friday's botched initial public offering, the firm told its brokers on Thursday, according to several who listened to the call.

Green Mountain Coffee Roasters Inc (GMCR.O) independent director Douglas Daft resigned from the board this week, at a time when concerns about slowing growth and allegations of accounting malpractice have hammered the stock.

VeriFone Systems Inc (PAY.N) reported a modestly better-than-expected quarterly profit, as its acquisition of Hypercom boosted sales, but the maker of credit card swipe machines forecast third-quarter revenue below analysts' estimates.

BlackRock Inc's (BLK.N) Global Resources team increased its Chesapeake Energy Corp (CHK.N) stake to 4 million shares from fewer than 1 million shares, a source familiar with the situation said on Thursday.

U.S. generic drug maker Mylan Inc (MYL.O) settled a patent infringement suit with Sunovion Pharmaceuticals Inc, a unit of Dainippon Sumitomo Pharma Co (4506.T), related to the Japanese drugmaker's bronchitis medicine Brovana.

PayPal has made deals with 15 retailers including Toys R Us, J C Penney (JCP.N) and Barnes & Noble (BKS.N) that will allow consumers to pay for purchases with their cellphones while expanding the online payment company's service into additional physical stores.

U.S. stocks ended slightly higher in a third session marked by late-day swings, but the Nasdaq fell after NetApp gave a weak revenue forecast, casting doubt on the outlook for tech spending.

The Dow Jones industrial average .DJI was up 33.60 points, or 0.27 percent, at 12,529.75. The Standard & Poor's 500 Index .SPX was up 1.82 points, or 0.14 percent, at 1,320.68. The Nasdaq Composite Index .IXIC was down 10.74 points, or 0.38 percent, at 2,839.38.

(Reporting by Blaise Robinson; Editing by Toby Chopra)

• A Permanent Economic Emergency