"European equities are broadly higher in afternoon action, in the wake of yesterday's battle back in the US," said analysts at Charles Schwab.
Wall Street on Tuesday added to the previous day's late surge, rising by about one percent in early New York business.
The British pound also enjoyed a modest rebound as British Prime Minister Theresa May scrambled to rescue the UK's Brexit deal.
British unemployment data supported a recovery in the pound, in particular as they came with an unexpected wage rise, said David Cheetham, chief market analyst at traders XTB.
"Having said that, this data pales into insignificance compared to the latest Brexit developments as far as the markets are concerned and on this front the ongoing uncertainty leaves the pound vulnerable to further declines," Cheetham added.
- 'Extremely nervous' - Jasper Lawler at London Capital Group added that "until traders have any sense of what will happen with Brexit, they will remain extremely nervous".
Other analysts echoed the sentiment that, despite Tuesday's rebound, there are still more reasons to be pessimistic than not.
Global risk sentiment "is facing a towering wall of worry as virtually every major economy in the world is slowing, suggesting the synchronised global slowdown is accelerating at a much faster pace than thought", said Stephen Innes, head of Asia-Pacific trade at OANDA.
The China-US trade row, signs of softness in both countries' economies, the Huawei arrest, Brexit, demonstrations in France and volatile oil prices are among the factors investors are weighing.
But in Europe, Frankfurt stocks were well over two percent higher.
Paris rose by nearly as much after President Emmanuel Macron made spending promises worth up to 11 billion Euros ($12.5 billion) aimed at quelling unrest.
- Paris up after Macron splurge - Adding lost income after he scrapped a fuel tax, France is looking at a hole in its 2019 budget of around 15 billion euros -- which could take its deficit to 3.4 percent of GDP from a planned 2.8 percent.
While the news pushed French government bond yields higher, the Paris bourse was more focused on the potential impact of the measures on growth, analysts said.
"As long as he (Macron) continues with pro-growth supply-side reforms, the French economy can strengthen over time despite a cyclical slowdown now," said Kallum Pickering, senior economist at Berenberg.
Meanwhile expectations are low that Beijing and Washington can reach a full-blown agreement that will end their trade war, with the waters muddied by the arrest in Canada of a top executive at Chinese telecoms giant Huawei.
Meng Wanzhou, Huawei's chief financial officer and daughter of the firm's founder, faces US fraud charges related to allegedly breaking Iran sanctions. She has asked for bail.
The arrest has angered China and led to concerns that it could derail the trade talks.
Elsewhere Tuesday, both main oil contracts climbed but the gains were short of making up for the three percent losses suffered Monday on concerns an output cut agreed by OPEC at the weekend might not be enough to offset a supply glut.
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