The FTSE added 24 points (+0.5%) to settle at 5337, whilst the CAC (+0.5%) and DAX (+1%) also recorded gains.
Stateside the Dow Jones put on 33 points (+0.3%) to settle at 11556, whilst the S&P 500 (+0.2%) also gained ground but the Nasdaq shed 0.5%
Stronger-than-expected consumer confidence data provided a boost but weak financial shares limited the advance in the US.
The euro dropped versus the majority of its most-traded counterparts amid speculation Europe’s effort to expand its bailout fund to 1 trillion euros ($1.3 trillion) is falling short.
The Aussie dollar and the Swedish krona were the biggest winners versus the greenback as investors sought higher-yielding assets.
Oil rose for a third consecutive session on the back of the consumer confidence numbers. Crude for January delivery rose US$1.58 to settle at US$99.79 a barrel.
Gold and copper also enjoyed solid gains, adding 1.5% and 2.8% respectively.
In company news, Metcash has reported a 14% slide in 1H11 net profit to $94.4 million. The result was weighed down by grocery price deflation and economic uncertainty.
Today’s session will bring data in the form of HIA new home sales (tentative), private capital expenditure and private sector credit (11:30am, AEDT).