Equities on both sides of the Atlantic jumped after polls indicated Democratic candidate Hillary Clinton is on track to clinch the US presidential election.
Clinton is ahead of Republican rival Donald Trump, 44 per cent to 41 per cent, when third-party candidates are included, according to the final Bloomberg Politics national poll before Tuesday's election. At least five major polls on Monday showed Clinton in the lead, according to Reuters.
The FBI on Sunday said it has no reason to pursue criminal charges against Clinton over the handling of her emails, lifting a cloud that it had placed on her campaign a little more than a week ago.
In 12.54pm trading in New York, the Dow Jones Industrial Average rallied 1.9 per cent, while the Nasdaq Composite Index climbed 2.3 per cent. In 12.39pm trading, the Standard & Poor's 500 Index gained 2 per cent.
"We've been down nine straight days as concerns over a potential Trump victory put a lot of caution in the market," Michael James, managing director of equity trading at Wedbush Securities in Los Angeles, told Bloomberg. "Some of that is being relieved with the comments from the FBI about the Clinton e-mail investigations."