London's FTSE 100 index of leading shares advanced 1.02 percent to 5,147.27 points, Frankfurt's DAX 30 index gained 1.01 percent to 5,529.26 points and in Paris the CAC 40 was up 1.22 percent to 3,088.75 points.

Asian stock markets closed higher on Tuesday thanks to bargain-hunting and a positive lead from Wall Street overnight, while Japanese shares were supported by a stable yen-dollar, traders said.

Sentiment was also given a slight lift by better-than-expected preliminary manufacturing activity data from China that raised hopes a feared hard landing in the world's number two economy was less likely.

However, investors remain nervous about the state of the global economy, pushing safe-haven gold to fresh records above $1,900 an ounce.

Copyright AFP (Agence France-Presse), 2011