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London - European stocks jumped on Wednesday, mirroring gains in Asia, as investors welcomed Greece's debt relief deal, bright German and US economic data, easing Brexit concerns and firmer oil prices.
The region's markets had also climbed the previous day as opinion polls suggested Britain would vote to remain in the European Union in a crucial referendum next month.
Sentiment was boosted further Wednesday after eurozone ministers clinched vital agreement with Greece to unlock more bailout cash and start tackling the country's debt mountain.
The deal releases €10.3bn in bailout funds that Greece urgently needs to repay big loans to the European Central Bank (ECB) and International Monetary Fund (IMF) in July, having already fallen behind in paying for everyday government duties and wages.
"With a much needed 10.3 billion euros in Greek bailout funds approved in the early hours of the morning, the European markets have gotten off to a perky start," said analyst Connor Campbell, at trading firm Spreadex.
"The eurozone finance ministers were at it all night... to hash out a deal that satisfies both those opposed to major debt relief - Germany - and those who are adamant that Greece cannot survive without it - the IMF."
Around 13:15, the London stock market was up 0.6% and Paris added 0.9% in value compared with Tuesday's close.
Frankfurt rallied 1.3% after a key survey showed that German businesses are feeling increasingly positive over the economic outlook in the eurozone powerhouse.
The Ifo institute's business climate index rose by a full point to 107.7 points in May, comfortably outpacing analysts' expectations, Ifo said in a statement.
The better-than-expected data reinforce the resilient picture of the German economy, which more than doubled its growth pace to 0.7% in the first three months.
READ: German business sentiment ignores Brexit fears
The Ifo confirms "the German economy is starting to benefit from an uptick in economy activity of some of their major trading partners like China and the United States", said analyst Markus Huber, at City of London Markets.
The energy sector forged higher on rising oil prices, which boost profits and revenues.
London-listed Royal Dutch Shell was also lifted after it announced another 2 200 job cuts due to low oil prices and following its takeover of smaller rival BG Group.
READ: Royal Dutch Shell to axe further 2 200 jobs
Shell's "A" share price soared 1.0% to 1 671.50 pence in London, while rival BP saw its shares gain 1.3% to 362.3 pence.
French peer Total won 1.1% to €43.60 in Paris.
Back in London, Marks & Spencer plunged 7.9% to 409.70 pence after the British retailer warned that a new turnaround plan would have a short-term hit on profits.
M&S also revealed that net earnings slid 16% to €529m in the group's financial year to April 2, hit partly by poor clothing sales.
Elsewhere, Asian equities gained ground on Wednesday, as investors also adjusted to the prospect of a US rate rise in the near future.
New York stocks charged higher overnight, with technology and financial shares benefitting especially from greater confidence in the US economic outlook.
The Fed has repeatedly stated its intention to continue raising interest rates this year after December's first hike in nine years.
But until recently investors had discounted the possibility of an imminent increase, given the market panic at the beginning of 2016 on concerns of soft global growth.
