US stocks rallied today as heavyweights like General Electric and International Paper gave reassuring forecasts and helped invigorate a market sitting at multi-year lows.
The Dow Jones industrial average jumped 115 points, or 1.50 per cent, to 7,798, after dropping 2.4 per cent to a four-year low yesterday.
The broader Standard & Poor's 500 Index climbed 11 points, or 1.40 per cent, to 830. The technology-laced Nasdaq Composite Index rose 17 points, or 1.51 per cent, to 1,199.
European stocks rose on the back of Wall Street's surge keeping up their recovery from the five-and-a-half-year lows of yesterday.
The FTSE 100 rose 72 points to 3,743.90 while the German DAX rose 39 points to 2,912.79.
Earlier the FTSE Eurotop 300 index jumped 3 per cent to 832 points, after closing yesterday at its weakest level since April 1997.
Trading volumes were heavy and gains were broad-based, with advancing issues outpaced decliners by a margin of five-to-one. The narrower DJ Euro Stoxx 50 index rose 3.8 per cent to 2,269 points.