Wall Street shares rose today as the market digested mixed inflation news and consolidated after a strong rally yesterday also.
As European shares closed, the Dow Jones was up 0.5%, or 73 points at 13,556 and the Nasdaq had added 0.60%, or 15 points, to 2,597.
Investors mulled a report on US inflation at the wholesale level, showing a surge in energy costs pushed up the producer index by a sharper than expected 0.9% in May. But 'core' prices excluding food and energy rose a tamer 0.2%.
European shares bounced to their highest close in over a week, with banks and oil producers leading the way, with sentiment buoyed by the stronger performance on Wall Street.
Britain's top index of 100 leading shares rose over 1%, as a retreat in U.S. bond yields improved sentiment in stock markets, boosting UK equities, which also benefited from upbeat oils.
The FTSE closed 1.4% higher at 6,649, with oil responsible for nearly a quarter of that increase.
In Frankfurt the Dax index ended at 7849 points, up 168 or 2.19% and in Paris the CAC-40 index closed at 6047 points, up 112 or 1.90%.
Irish shares also staged a solid comeback this afternoon with the ISEQ closing up 1.5% percent at 9,505 - with all the heavyweights higher.
The main movers were AIB which closed up 41 at €21.11, CRH jumped 60 cent to €36.22, Bank of Ireland finished up 28 at €15.87 and Paddy Power closed up 80 at €22.20.
Earlier today in Tokyo the Nikkei rose 0.62% as a weakening yen lifted exporters. The Nikkei added 109.52 points to close at 17,842.29.
