The Dow Jones has rebounded from yesterday's sharp fall as positive news emanating from China and Spain outweighed disappointing US economic figures.
Shortly before 16.00 GMT, the index was up 2.06% or 205 points to 10,179 as investors were buoyed by a statement form China denying reports it is considering selling its holdings in European bonds.
The passing of legislation in Spain, making way for €15bn of additional budget cuts, also restored investor confidence and helped offset disappointing US first quarter GDP figures, which came in at a lower-than-expected 3%.
Microsoft is up 5% despite news rival Apple had surpassed it in market capitalisation, while Intel American Express, Alcoa and General Electric are all in positive territory.
The euro is up 0.71% against the dollar to $1.2265, with the positive news coming from China and Spain helping the single currency rebound.
Meanwhile, the FTSE has continued making steady gains and has advanced more than 3%, or 152 points, to 5,190.
Hedge fund manager Man Group tops the winner's board, gaining 9%, after reporting better-than-expected full-year profits.
Elsewhere, insurers Aviva (up 6%) and Legal & General (6%) are also faring well.
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