London's FT-SE 100 index traded 58.9 points higher at 5,966.2 points, with winners outnumbering losers 83 to 12.

In Paris, the CAC-40 index hit a record high at opening, breaking the 4,300-level, to open 46.86 points higher at 4,307.54. Frankfurt's DAX index traded at 5,964.77, up 57.92 points.

Market sentiment was helped by the Dow Jones' 96.65-point rise to 9,048.67, and the Federal Reserve's vote to leave short-term US interest rates unchanged amid signs the US economy was beginning to slow of its own accord.

There were also strong gains in Asia, with the Nikkei up 108.69 points at 16,471.58 points, on optimism over hoped for banking reforms from the Japanese government.

GEC rose 19 pence to 543.5 pence a share after reporting pre-tax profits of 1.08 billion pounds in the financial yearending March 31, excluding exceptional, up from 1.01 billion pounds. HSBC recommended the stock.

Orange mobile phones rose 23 pence to 670 pence a share after second quarter subscriber figures, while Vodafone gained 42 pence to 838 pence a share after a positive reaction to its own subscriber figures on Wednesday.

Lehman Brothers reiterated its `strong buy' recommendation on Vodafone, while DrEsdner Kleinwort Benson said it recommended Vodafone and to a lesser extent Orange.

BP rose eight pence to 905 pence a share. Cable and Wirelss rose 25 pence to 772 pence a share. British Aerospace rose 14 pence to 487 pence a share.