The gains permeated in the Asian region yesterday, before spreading to the Europe and US.
The FTSE added 0.7%, whilst the CAC and DAX added 1.1% each.
Stateside, markets really took off; the Dow Jones added 322 points (+3%), whilst the broader S&P 500 added 3.4% whilst the tech-heavy Nasdaq added 4.3%.
It was actually another soft round of economic data which caused the market to rally.
The Richmond Fed’s regional manufacturing survey showed a sharp decline in economic activity this month whilst new home sales also dropped for a third consecutive month, falling to the lowest level since February.
Normally such data would lead to a selloff but investors now believe, even more firmly, that the Fed must and subsequently will, intervene.
The US dollar fell against 16 of its most-traded peers as bets the Bernanke will further prop up the economy dampened demand for the safe-haven greenback.
Conversely, the Aussie and Kiwi dollars rallied against the greenback amid a return of risk appetites.
Gold suffered heavy falls overnight, dropping the most in a year. Bullion for December delivery slumped $30.60 (-1.6%) to settle at US$1861.30 an ounce.
Oil rose for a second session amid the Fed stimulus speculation. Crude for October delivery rose $1.02 to settle at US$85.44 a barrel
Today’s session will bring us data in the form of the CB leading index (10:00am, AEST) and construction work done (11:30am, AEST).