Europe's main stock markets rebounded from multi-month lows to post their biggest daily gain in 10 weeks thanks to signs of progress in US talks to avoid a budget crisis.
London's FTSE closed 132 points (2.4%) higher at 5,738 as UK shares matched their biggest one day rise of the year, recovering some of last week's steep falls.
In Paris, the CAC added 98 points (2.9%) to 3,440, while in Frankfurt the DAX gained 173 points (2.5%) to 7,124.
In Dublin, the ISEQ closed 1.3% higher at 3,220 with FBD Holdings adding 4.9% to €9.65. It was in the news today as its profit after tax from July to date is ahead of expectations and ahead of this time last year.
On Wall Street, shares climbed more than 1%, extending a rally that began on Friday, while crude oil was up more than 2%.
US lawmakers indicated compromises were possible in negotiations to avert $600 billion in tax increases and spending cuts due to start in January - the "fiscal cliff" that threatens to send the US economy back into recession.
Earlier in Asia, shares were also boosted by hopes that US politicians can overcome an imminent fiscal crunch.
Tokyo's Nikkei index gained 129 points (1.4%) to finish at 9,153 while Hong Kong's Hang Seng index closed 103 points (0.5%) higher at 21,262.
