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London - Europe's stock markets advanced on Tuesday, the first day of the second quarter of 2014, following upbeat comments from Federal Reserve chief Janet Yellen overnight, dealers said.
Sentiment was boosted also by encouraging economic data in Germany and the wider eurozone, they added.
Shortly after midday, London's benchmark FTSE 100 index rose 0.52% to 6 633 points and in Paris the CAC 40 gained 0.80% to 4 426.46 points.
Frankfurt's DAX 30 won 0.58% to 9 611 compared with Monday's closing level.
"Stocks in Europe kick off the second quarter of 2014 on a firmer footing thanks to overnight gains in US and Asian markets," said analyst Ishaq Siddiqi at trading group ETX Capital.
Wall Street had surged on Monday, helped by Janet Yellen's assurance the Fed will continue to support the economy, and on the back of a rebound in technology stocks.
Fed chair Yellen delivered a speech in which she underlined that unemployment was still a big challenge for the economy and that the Fed will maintain its extraordinary measures until the jobless rate falls a lot more.
New York's Dow Jones Industrial Average rallied 0.82% in reaction.
Tech stocks were the main beneficiaries of the bounce after having been sold off heavily last week amid worries of a new bubble and fears over Russia-Ukraine tensions.
European markets also forged higher on Tuesday after a key survey revealed the recovery of the eurozone's manufacturing sector continued in March with activity showing the ninth month of growth in a row.
Markit Economics said on Tuesday that its Eurozone Composite Purchasing Managers Index (PMI) for March stood at 53.0 down from February's 53.2.
However, the index stood at 53.4 during the first quarter as a whole.
That was the best outcome since the second quarter of 2011, boosting sentiment before Thursday's interest rate decision from the European Central Bank.
The index is a leading indicator of activity and is closely watched by economists. A reading above the 50-point threshold indicates a growth in activity while less than 50 indicates a contraction.
Frankfurt stocks were also lifted as Germany's unemployment rate held steady in March.
The number of people registered as unemployed fell by 12 000 in seasonally adjusted terms this month, official data showed.
Analysts had been projecting a slightly smaller decline of around 7 500.
Asian markets diverged on Tuesday as official data showed a slight pick-up in Chinese manufacturing while a closely watched survey showed Japanese business confidence at a more than six-year high.
Hong Kong equities rallied 1.34% and Shanghai added 0.70%, while Seoul won 0.32%.
Tokyo stocks however fell 0.24% as Japan ushered in its first sales tax hike since 1997.
China said its official purchasing managers index (PMI) of manufacturing activity came in at 50.3 for March, up slightly from February's eight-month low of 50.2.
In foreign exchange trade on Tuesday, the euro climbed to $1.3794 from $1.3772 late on Monday in New York. The dollar firmed to ¥103.35 from ¥103.22.
The European single currency gained to 82.83 British pence from 82.64 pence, while the pound eased to $1.6651 from $1.6664.
On the London Bullion Market, the price of gold dipped to $1 286.50 an ounce from $1 291.75 on Monday.
Among European stocks, shares in Alstom were one of the biggest gainers, climbing 8.2% to €21.45 after the French engineering company said it is selling its steam auxiliary components business to the investment firm Triton in a deal which values the unit at €730m.
