European benchmark indices climbed a wall of worry yesterday as the war in Iraq unfolded, lifted by gains in Nokia and in utility Suez, and helped by good news from HVB.
Firmer US stock index futures also helped by signalling a strong start to trade on Wall Street.
"Markets have opened weakly and come good by lunchtime for the second day running," said Roger Hornett, global strategist at Gilissen Securities, which manages five billion euros globally.
"That shows the investment community is looking through the war and is beginning to show a real commitment to equities."
Other experts, though, were less enthusiastic, and said any gains were still mainly related to the unwinding of war risk hedge trades.
Nagging worries about the likely duration of the war and its potential impact on a fragile global economy also tempered buying interest.
By 1140 GMT, the FTSE Eurotop 300 index of pan-European blue chips was up one per cent at 797 points, having opened in the red.
That left the benchmark almost 17 per cent higher than the six-year low that it plumbed on March 12.
Rising stocks outpaced fallers by around four to one, and the euro zone Euro Stoxx 50 index rose 1.5 per cent.
Mobile phone maker Nokia was up 2.6 per cent, helped by indications that Tuesday's strong gains in the technology-laden Nasdaq Composite were likely to be extended when New York reopens.
Suez shares built on Tuesday's 8.3 per cent gain and rose six per cent, amid hopes it will soon be able to sell more assets - including UK unit Northumbrian Water - to trim its debt.
Shares in HVB Group jumped 4.7 per cent on news Germany's second largest bank was set to detail plans to sell some businesses to avoid asking investors for cash as it spins off its real estate arm, according to banking sources.
Meanwhile, shares in Swedish retailer Hennes & Mauritz rose 1.1 per cent on news of a better-than-expected 43 per cent year-on-year leap in first quarter profits.
British retail chain Woolworths jumped 8.6 per cent after reporting 2002 profits in line with forecasts and saying its sales in the first few weeks of this year were on track.
On the downside, shares in British Airways fell 2.9 per cent after the airline said it was speeding up its extensive job cuts programme and would cut capacity by four per cent, due to the war in Iraq.
Swisscom fell four per cent after the telecoms group posted results at the lower end of expectations.