Stocks on both sides of the Atlantic advanced amid better-than-expected corporate earnings and US consumer confidence climbing to the highest level in seven years.
Focus is also squarely on US Federal Reserve policy makers as they started their two-day meeting. The central bank is expected to end its monthly bond-buying program.
Shares of Amgen jumped, last up 5.1 per cent, after the company reported third-quarter earnings that surpassed expectations and upgraded its full-year forecast.
In afternoon trading in New York, the Dow Jones Industrial Average added 0.57 per cent, the Standard & Poor's 500 Index rose 0.63 per cent, while the Nasdaq Composite Index climbed 1.26 per cent.
Gains in shares of Caterpillar and those of United Technologies, up 2.1 per cent and 1.4 per cent respectively, led the Dow higher. Shares of Merck extended Monday's slide, last 2.5 per cent lower for the largest percentage drop in the Dow in afternoon trading.