In London, shares gained some ground through the afternoon as investors showed increased confidence in the banking sector
The FTSE 100 index added 55.95 points (1.27%) to 4,454.63 by mid-afternoon.
Royal Bank of Scotland led the pack with double digit gains, up 13.7% to 47.3p, despite revealing a loss. Scroders shares also climbed, up 8.5% to 944.5p.
Fresnillo shares climbed 8.55% as metal prices rose, while Vedanta Resources added 7.58%.
On Wall Street, markets opened in positive territory as investors digested the results of a stress test, which indicated around $75bn is needed to protect US banks, far less than some had feared.
The Dow Jones climbed 128.56 points (1.53%) to 8,558.41, with banks leading the charge.
Bank of American added 5.5% to $14.25, while rivals Citigroup and JPMorgan Chase shares were up 4.46% and 3.72% respectively after making losses on Thursday.
Tech shares were depressed, with Hewlett Packard down 2.17% to $33.78, while Intel dipped 2.09% to $15.44 per share.Investment Week
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m
Medium to long-term capital growth