The London market posted its biggest one-day gain in six weeks, as traders set aside their concerns over the impact the Paris attacks will have on global trade.
The FTSE 100 Index jumped 122.4 points to 6268.8, its biggest single session rise since October 5, on the back of robust overnight gains from markets in New York and Asia.
Germany's DAX and France's Cac 40 were both up around 2.5 per cent. In New York, the Dow Jones Industrial Average was more than 80 points ahead in early trading.
The pound was flat against the US dollar at 1.52, after official data showed that Consumer Prices Index (CPI) inflation was unchanged at minus 0.1 per cent in October, marking the longest run of flat or falling prices since records began and further pushing back the chances of the Bank of England hiking interest rates.
Sterling was slightly up against the euro at 1.43.
Engineering firm Smiths Group was the strongest riser in the top flight, up 10 per cent or 94.5p to 1020p, after it agreed a deal with its pension trustees that will reduce the amount of money it has to pay into its pension scheme.
The firm's most recent valuation of its pension scheme has valued the scheme's deficit at £285 million, £250m lower than the last valuation in 2012.
It also added it has made a "resilient start to the year" and its full year expectations were broadly unchanged.
The biggest faller in the top flight was budget carrier easyJet, which fell 73p to 1710p, despite posting strong pre-tax profits of £681m for the year to the end of September, in line with its upgraded guidance.
This is up £105m on last year and represents the fifth straight year of record profits.
However, the airline had set its upgraded guidance at between £675m and £700m for the year, and traders had hoped to see a final figure closer to the top end of that range.
Elsewhere, Enterprise Inns posted flat annual profits as it sells off hundreds of sites in preparation for the end of tied pubs.
The FTSE 250 firm sold off 260 pubs for £75m in the year, as it prepares for new legislation that allows tenanted pub landlords to break the link with their pub group, leaving them free to search for more competitive beer contracts.
The country's largest pub group, with around 5,000 outlets, said its pre-tax profits before exceptional items edged up 0.8 per cent to £122m in the year to the end of September compared to 12 months ago, citing lower interest charges.
Analysts at Numis said: "Enterprise is ahead on implementing its new strategy."
Shares rose more than six per cent, or 6.1p to 101.1p.
The biggest risers in the FTSE 100 Index were Smiths Group up 94.5p at 1020p, Rolls-Royce up 27p at 555p, Hargreaves Lansdown up 55p at 1498p and Old Mutual up 7.3p at 198.9p.
The biggest fallers in the FTSE 100 Index were Anglo American, down 23p at 431p, easyJet, down 73p at 1710p, Randgold Resources, down 99p at 3929p, and Glencore, down 0.7p at 88.8p.
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