Prospects for continued monetary easing in Asia and the US fuelled a collective rally on global markets overnight.
In the US, the Dow Jones soared 181 points (+1.4%) to settle at 12987, with the S&P (+1.3%) and Nasdaq (+1.4 %) also logging strong gains.
In Europe the FTSE 100 climbed 76 points (+1.3 %) to settle at 5635, whilst the CAC and DAX both put on 1%.
The wave of optimism came as investors shrugged off concerns over China and Europe and instead pinning their hopes for more accommodative monetary policy.
Two Fed officials both reaffirmed last night that US interest rates will remain low until the end of 2014, with one of them flagging the possibility of a QE3.
There was also optimism ahead of today’s Chinese GDP data, with investors pricing in a strong possibility of a better-than-expected result.
The global rally even managed to withstand data showing US weekly jobless claims rising to a two-month high.
There were some big moves in commodity markets, with copper climbing more than two percent amid optimism over the world economy.
Other commodities received a leg up from comments by a Bank of Japan official, who pledged powerful monetary easing in order to combat deflationary pressures.
Investors also speculated Chinese officials will add more stimulus measures to spur the economy.
Gold (+1%), silver (+2.7%) and oil (+1%) were among those that rallied on the back of the dovish comments from China, Japan and the US.
The Aussie dollar was also in hot demand, soaring above US$1.04 following yesterday’s bumper domestic employment report.
Although there are no local economic releases, regional markets will be focussed squarely on Chinese first quarter GDP, which is slated for release at 12:00pm, AEST.