The FTSE added 148 points (+2.9%) to settle at 5313, whilst the CAC (+5.5%) and DAX (+4.6%) enjoyed even stronger gains.
Stateside, the Dow Jones added 291 points (+2.6%) to settle at, whilst the S&P 500 gained 2.9% and the Nasdaq jumped 3.5%.
The move higher snapped a seven-session decline for US stocks in the S&P, after Thanksgiving retail sales climbed to a record.
The US dollar and Japanese yen lost ground amid renewed optimism regarding Europe, which in turn decreased demand for safe havens.
The Kiwi dollar rose against the majority of its 16 major peers following the re-election of Prime Minister John Keys, strengthening his ability to balance the budget.
Oil climbed, adding US$1.44 to settle at US$98.21 a barrel, whilst copper advanced the most in a month following the steps in Europe to tame the debt crisis.
There is no major local data due out for today’s session.