Investor enthusiasm for leading stocks helped Amsterdam power ahead of other European markets. The AEX large-company index closed 36.67 or 3.4 per cent higher at 1,109.83.
AEX stocks outperformed smaller companies. "Investors are switching to a pan-European focus and are looking at the larger caps," said Mr Thijs Berkelder, an analyst for HSBC Securities.
There were signs of recovery in the share prices of businesses that have been punished recently by investors fearful of a cyclical downturn. Akzo Nobel, the chemicals company, rose 5.80 guilders to Fl77.10, while Hoogovens, the metals producer, ended Fl4.80 higher at Fl59.
Paris moved up as financial stocks performed strongly in a heavy day's trading. The CAC-40 index closed 95.94 or 2.6 per cent higher at 3,802.70.
Frankfurt was supported by the stronger dollar and firm opening on Wall Street. The Xetra DAX index finished 105.74 or 2.2 per cent higher at 4,911.43.
Viag was a sharp early riser on suggestions that the proposed tie-up with Alusuisse would take the form of a merger and not, as previously suspected, a takeover.
Metals and trading group Metallgesellschaft shot up 2.10 deutschmarks or 9.2 per cent to DM25 as the group unveiled higher full-year results.
Cars benefited from a stronger dollar. and banks had a good day.
Milan was helped by the retreat in concerns over Latin America, and the Mibtel index closed up 364 or 1.7 per cent at 21,541.
Madrid was led by strength in Telefonica, with the general index closing up 14.99 or 1.8 per cent to 828.58.
