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The FTSEurofirst 300 had increased by 1.6 per cent to 873.67 points at 09:40 BST, Reuters reports, with HSBC, BNP Paribas and Deutsche Bank adding between 3.8 per cent and 6.6 per cent to their share prices.
Shares in Bank of Ireland soared 27 per cent following reports that it is to buy back debt to boost its capital position, while mining giants Anglo American and Xstrata climbed by 6.2 per cent and 6.6 per cent respectively.
Market analyst Joshua Raymond noted that many investors are demonstrating an "increased sense of optimism" regarding a potential economic recovery.
He suggested that many investors "remain confident in buying from moves of consolidation", despite the fact that there is a "clear incentive to profit take" and suggestions that the markets may be "getting ahead of themselves".
