Stocks in Milan and across the rest of Europe recovered strongly on Monday after European leaders unveiled a financial rescue plan Sunday.
Milan led the pack with a 6.9% gain on its key S&P/MIB index.
London rallied by 4.85%, Paris by 6.05% and Frankfurt by 5.87%.
An hour into trading the panEuropean Dj Stoxx 600 was holding onto a 5% gain, at 5.74% up.
''The European goal of boosting confidence on the markets has already been reached: the crisis plan provides a minimum of guarantees and we're witnessing a strong rally,'' a trader said.
Earlier, Asian bourses rose by an average 4 points on a day when Tokyo was closed for a national holiday.
In Europe, the banks which had suffered most in the crisis led the way back with UniCredit 6.4% up followed by Barclays with a 6.6% gain and Royal Bank of Scotland with a 5.3% rally.
Oil stocks also rose as the price of crude pushed through the 81-dollar threshold.
BHP Billiton rebounded 7.2% and Rio Tinto surged back 11%. In Paris, Total gained 4.8% and Royal Dutch Shell 5.7%.
The following table shows the morning gains across Europe:
London 4.85%
Paris 6.05%
Frankfurt 5.87%
Milan 6.91%
Madrid 5.11%
Amsterdam 4.94%
Stockholm 6.72%
Zurich 5.87%
