The Dow Jones has made steady gains on the back of positive US economic news, allaying fears of a slowing economy.
As at 17.00, the Dow was up 1.4%, or 144 points, to 10446 following release of two sets of figures suggesting the slowdown in the US economy may not be as bad as originally feared.
The Federal Reserve said factory output increased 1.1% in July - its biggest increase since July 2009 - and the real estate sector was given some reprieve with figures showing housing construction increased 1.7% last month.
Retailers' financial results added to the buoyant mood, with DIY retailer Home Depot leading the winner's board with a near 5% gain.
Miner Alcoa has also made gains, up 4%, as the mining sector continues to flourish on the back of strong metal prices and positive demand signals from China.
Positive sentiment emanating from across the Atlantic helped push London's FTSE higher after an already-strong showing driven by financials and miners.
As a 17.00, London's leading index was up 1.41%, or 74 points, to 5350. Insurers Aviva and Prudential are amongst the day's winners, both up around the 5% mark. Miners complete the leaders' table, with Antofagasta, Xstrata and Lonmin all up.
Figures showing inflation eased to 3.1% in July contributed to the FTSE's earlier gains as equities enjoyed a boost in popularity.
Gains in London and New York were mirrored throughout Europe, with France's Cac 40 up 1.82% and Germany's Dax up 1.57%.
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