The FTSE 100 has opened lower this morning as investor confidence was dented by weaker Asian markets overnight and a flat US session on Monday.
The Dow Jones hit a fresh year-high this morning after Federal Reserve chairman Ben Bernanke said the US economy is nearing recovery.
The UK's leading share index powered to a new year high on fresh hopes that an economic recovery in on the cards.
The FTSE 100 continues to advance this afternoon, adding 60.29 points (1.27%) to 4816.87 at 2.30pm.
The Dow Jones has made a modest ascent this morning, with a good start for financials offsetting poor unemployment data.
The FTSE 100 has bounced back over 4,700 for the first time since opening this week, with mining stocks at the forefront of today's strong gains.
The FTSE 100 fell sharply on opening this morning, with another poor day in Asia cancelling out yesterday's gains for London's blue chip index.
The Dow Jones climbed in early trading on Tuesday despite a marked slump in US housing starts.
The Dow Jones was rapidly approaching a 2% drop in early trading on Monday on fears the recent rally may have been overdone.
London's blue-chip index has suffered a poor start to the week after sharp stock falls in Asia today, with property groups and miners among the early decliners.