Share prices across Europe are soaring to near record highs, after central bankers around the world confirmed they would continue to support the recovery.
The UK's FTSE 100 jumped by more than 100 points after the long weekend, up 1.6% in the morning at 6763 points. The main stock market indices in Germany, France, Spain and Italy were all more than 1% higher on the day.
Tom Robertson, senior trader at Accendo Markets, said: "Investors are still seeking higher highs and new record levels in the near term, whilst the central banks are continuing their quantitative easing operations."
The bounce follows a sharp sell-off last week, triggered when the US Federal Reserve cast doubt over the future of its $85bn-a-month programme to shore up the economy.
Since then both the Bank of Japan and the European Central Bank have confirmed their stimulus plans will stay in place. On Monday, ECB executive board member Jörg Asmussen said the bank would stick to its expansive monetary policy for as long as necessary.
The German DAX rose 1.1% on Tuesday morning, France's CAC index was 1.5% higher, Spain was up 1.6% on the day, and Italy was 1.8% higher.
Keith Bowman at Hargreaves Lansdown said: "There is still some nervousness, but investors are also feeling that equities are the best asset class and the US is generally moving in the right direction."
In the UK, banks and travel companies – which tend to fare better in a buoyant economic environment – were in demand, with Barclays and TUI Travel more than 3% higher on the day. But resource companies were down due to ongoing fears over China's growth prospects.
