The Dow posted its biggest gain in a month after industrial production returned to growth in September, easing concerns over the state of the US manufacturing sector.
The positive mood was helped by a raft of solid profit results from majors including Johnson and Johnson, and Goldman Sachs. European equities enjoyed stronger moves after a German official indicated Spain could be granted a temporary credit line from the EU bailout fund.
Commodities were stronger, with gold rebounding 0.7% to $1751 as the US dollar fell. Oil edged up to US$92.09 a barrel amid rising equities and on data showing US homebuilder confidence advancing to a six-year high.
Speculation of a credit line being granted to Spain saw the euro climb past US$1.30, whilst the Aussie appreciated towards US$1.03 after yesterday’s RBA minutes didn’t appear as dovish as the market was expecting.
In local economic news, the Melbourne Institute Leading Index is slated for release at 10:30am, AEDT.