Yesterday’s Greek austerity vote provided the catalyst for the gains, removing some of the uncertainty surrounding the country’s solvency moving forward.
In Europe the FTSE added 53 points (+0.9%) to settle at 5906, whilst the CAC (+0.3%) and DAX (+0.7%) also enjoyed solid gains.
The head of China´s $410 billion sovereign wealth fund, China Investment Corporation, said European government bonds were not an ideal investment for long-term investors.
The CIC chief Lou Jiwei said that Germany´s Chancellor Angela Merkel asked CIC and other long-term investors to buy EU debt on a recent trip to China.
Stateside, the Dow Jones firmed 73 points (+0.6%), clawing back most of the previous session’s losses to settle at 12874.
Elsewhere, the broader S&P 500 added 0.7% whilst the tech-heavy Nasdaq jumped 1%.
US President Barack Obama outlined budget proposals for the 2013 fiscal year. The annual budget deficit was projected at $1.33 trillion in fiscal 2012, or 8.5% of gross domestic product, falling to $901 billion in 2013, or 5.5% of GDP.
The Aussie dollar gained ground overnight to be trading back above the US$1.07 handle, whilst the euro pared gains after approaching a two-month high against the greenback.
Oil rose strongly, adding 2.2% to US$100.83 a barrel whilst base metals eased modestly. Gold fell slightly, down US40c to US$1,724.90 an ounce.
In company news, BHP and Rio Tinto have approved a combined $4 billion in additional investment at the Escondida mine in Chile.
Today GWA Group, Paladin Energy, SAI Global and Western Areas report earnings, whilst eurozone ministers meet to approve Greek budget cuts.
Locally, the market will be in receipt of data in the form of NAB business confidence, at 11:30am, AEDT.