Key eurozone markets Frankfurt and Paris were both up by around around 1%, with London posting much more modest gains.
Frankfurt’s DAX 30 closed 1.1% up at 12,306.00 points, Paris’ CAC 40 ended 0.9% higher at 5,323.53 points and London’s FTSE 100 finished with a 0.3% gain at 7,636.93 points, whereas the EURO STOXX 50 climbed 0.9% at 3,395.60 points at close.
“European markets are rising nicely in the wake of a migration deal in the European Union,” said Charles Schwab analysts.
The euro firmed on the deal, and was further underpinned by eurozone inflation rising to 2.0%, increasing expectations of an end to the European Central Bank’s stimulus programme in December.
EU leaders clinched a hard-won migration deal during all-night talks that Italy’s hardline new premier said meant his country was “no longer alone” in shouldering the responsibility for migrants.
The leaders also offered a concession to German Chancellor Angela Merkel, who faces a rebellion from within her own coalition government, with moves to stop migrants registered in Italy and other EU countries from moving to Germany.
Wall Street was also posting credible gains approaching midday in New York after most banks passed US stress tests and Dow member Nike reported strong earnings.
Bank of America, JPMorgan Chase and Wells Fargo climbed after all three were given the green light by the Federal Reserve to return cash to shareholders.
“The week is ending in a very different frame to which it began, with solid gains for equities in the UK, Europe and across the Atlantic,” said Chris Beauchamp, chief market analyst at IG.
He wondered, however, whether this might be “just a flash in the pan, based on a misreading of the current ongoing trade war situation”.
Trading floors have witnessed heavy selling in the past three months, as the two biggest economies exchanged threats of tariffs on billions of dollars of imports, fuelling fears for global growth.
An increasing source of concern for many investors is China, where the main stock market is in bear territory after losing more than 20% from a recent peak and the yuan continues to struggle.
Many analysts warn any trade war with the United States would likely hurt Beijing more, with growth in the Asian giant already showing signs of slowing this quarter and authorities looking to provide support.
That comes just as the US perks up with the Federal Reserve expected to press ahead with interest rate hikes this year and next, and expansion likely to impress further.