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London's benchmark FTSE 100 index of leading companies jumped 1.84 percent to 5,674.70 points on Britain's first trading day of 2012, as traders returned to their desks following the festive New Year break.
Elsewhere on Tuesday, Frankfurt's DAX 30 gained 0.80 percent to 6,124.11 points and the Paris CAC 40 rose 0.28 percent to 3,231.43 points, extending bumper gains from the previous day.
Most European markets began 2012 with a bang on Monday, boosted by positive employment, consumer spending and manufacturing figures in Germany, Europe's biggest economy.
Asian equities also rose Tuesday, taking a lead from Europe, and after China announced better-than-expected manufacturing data.