Equities in Paris climbed back above the 3,500 level as the dollar topped up recent gains and investors piled into export-sensitive stocks.
Rhone Poulenc, Saint Gobain and ST Microelectronics stood out along with the motor sector, and at the close of the busy session, the CAC-40 index was up 101.2 or 2.9 per cent at 3,550.75.
Amsterdam rose 30.16 or 3.1 per cent to 995.52 on the AEX index as buyers got firmly behind DSM ahead of today's results statement and a number of so-called oversold stocks like Hoogovens and BolsWessanen met with demand.
Frankfurt rose 103.06 to 4,682.70 on the Xetra DAX index in spite of slippage for a number of heavyweight stocks, notably Deutsche Telekom and Daimler- Benz.
Zurich firmed on hopes of interest rate cuts and a firming dollar, with pharmaceuticals once again leading the way. Optimism about the future direction of the market saw some of the companies that had suffered most in the recent downturn make substantial gains.
Milan was helped by Monday's discount rate cut, but gains were limited with the Mibtel index adding 296 or 1.5 per cent to 20,184.
Although the one percentage point cut was larger than expected, traders said much of the decline in rates had been anticipated ahead of interest rate convergence for countries participating in European economic and monetary union.
Madrid rallied ahead of Brazil's austerity package, and the general index rose 18.79 or 2.5 per cent to 763.36. Latin America-linked stocks, which had been heavily sold off on concerns over the weakness of the region's economy, gained ground.
Stockholm was boosted by strength in Ericsson, and the general index rose 80.10 or 2.8 per cent to 2,911.99
