Europe's stock markets rose Tuesday as a key survey showed soaring investor confidence in Germany, the continent's biggest economy.
Asian indices mostly closed higher earlier in the day, with support coming from positive Chinese data and a Wall Street rally overnight fuelled by hopes for a coronavirus vaccine.
"Stock markets continue to make gains, after US markets came storming back yesterday after a difficult first half of September," noted Chris Beauchamp, chief market analyst at IG trading group.
Around midday, London's benchmark FTSE 100 index was up by 1.0 percent, with traders brushing off data showing an expected rise in UK unemployment on economic fallout from the pandemic.
In the eurozone, Frankfurt's DAX 30 index won 0.3 percent and the Paris CAC 40 gained 0.4 percent.
The euro rose against the dollar but was down versus sterling, which continued its recovery after diving last week on Brexit woes.
Britain and the European Union are sparring over Prime Minister Boris Johnson's legislation that would break the Brexit deal signed earlier this year, with regard to several key areas related to Northern Ireland.
MPs passed the bill at its first reading Monday night but Johnson faces a rebellion within his own Conservative party, fuelling uncertainty in Britain's already beleaguered economy.
"Tensions within the UK Conservative party over the PM's internal market bill continue to fester," said Stephen Innes at AxiCorp.
"There will likely be no clarity on Brexit well into November or even December, suggested by the latest sharp deterioration in the tone of negotiations."
Despite Brexit tensions and a resurgence in coronavirus cases, investor confidence in Germany unexpectedly soared to a 20-year high in September.
The ZEW institute's monthly barometer measuring investor expectations leapt to 77.4 points, the highest reading since May 2000.
- China boost -
Hong Kong and Shanghai stock markets rose Tuesday as traders cheered data showing China's retail sales -- a key gauge of the crucial domestic consumer sector -- rising for the first time since the pandemic struck, and beating expectations.
There was also a forecast-beating pick-up in industrial output.
The readings indicate the world's number-two economy is gradually recovering from the impact of virus lockdowns.
"A solid set of numbers from China has produced the usual strong reaction from the FTSE's mining contingent, helping the index to make decent gains," Beauchamp added.
The data also propelled oil prices to gains of more than 1.5 percent.
Analysts warned however that further ups and downs were to be expected
"Market volatility is returning after months of steady advances in risk assets," BlackRock Investment Institute strategists said.
"Valuations have risen, and we could see greater volatility as a result, especially as the US election closes in."
- Key figures around 1045 GMT -
London - FTSE 100: UP 1.0 percent at 6,083.14 points
Frankfurt - DAX 30: UP 0.3 percent at 13,228.59
Paris - CAC 40: UP 0.4 percent at 5,070.26
EURO STOXX 50: UP 0.5 percent at 3,333.07
Tokyo - Nikkei 225: DOWN 0.4 percent at 23,454.89 (close)
Hong Kong - Hang Seng: UP 0.4 percent at 24,732.76 (close)
Shanghai - Composite: UP 0.5 percent at 3,295.68 (close)
New York - Dow Jones: UP 1.2 percent at 27,993.33 (close)
Euro/dollar: UP at $1.1895 from $1.1862 at 2050 GMT
Pound/dollar: UP at $1.2904 from $1.2845
Euro/pound: DOWN at 92.15 pence from 92.35 pence
Dollar/yen: DOWN at 105.63 yen from 105.73 yen
West Texas Intermediate: UP 1.8 percent at $37.93 per barrel
Brent North Sea crude: UP 1.6 percent at $40.24 per barrel