U.K. stocks rose Tuesday, with banks among biggest gainers after a broker upgrade, outperforming the wider European market that was weighed by tensions between Catalonia and Madrid. The FTSE 100 index UKX, +0.40% picked up 0.4% to end at 7,538.27, marking its highest close in two months.

All main U.S. stock indexes closed higher on Tuesday, with the Dow finishing at its 47th record for 2017, as optimism appeared to grow ahead of the start of the earnings season, which will provide concrete insight into the state of U.S. corporations. The Dow Jones Industrial Average DJIA, +0.31% rose 69.61 points, or 0.3%, to end at 22,830.68. The S&P 500 SPX, +0.23% added 5.91 points, or 0.2%, to close at 2,550.64. The Nasdaq Composite Index COMP, +0.11% reversed earlier losses to finish 7.52 points, or 0.1%, higher at 6,587.25.

The monthlong global stock rally continued early Wednesday, with Asian stocks mostly higher and Japan's Nikkei making a fresh run at its best close since 1996. The markets seem to be comfortable with the U.S. Federal Reserve's plan to remain on its rate-increase path, as it signals confidence that the economy there is accelerating, said Michael McCarthy, chief market strategist at CMC Markets.