Wall Street bounced back in style overnight, with US stocks scoring their best gain in seven weeks amid concerns the recent sell-off has been overdone.
The rebound on global markets came despite mostly disappointing economic numbers out of the US.
Although weekly jobless claims fell more than expected, that was offset by other data showing a widening US trade deficit and another contraction in wages during the last quarter of 2013.
The Dow soared 189 points (+1.2%) to 15629, the S&P500 climbed 21 points (+1.2%) to 1773 and the Nasdaq jumped 45 points (+1.1%) to 4057.
In Europe, Mario Draghi did his part to fuel the rally on the major regional indices. The ECB chief refrained from introducing further stimulus but also dismissed the growing threat of deflation in the eurozone.
The UK FTSE rallied 100 points (+1.5%) to 6558, the French CAC added 70 points (+1.7%) to 4188 and the German DAX closed up 141 points (+1.5%) to 9257.
Commodities enjoyed modest gains, with oil benefiting from the drop in weekly US jobless claims, which helped support the outlook for energy demand.
Mario Draghi’s decision to make no changes to the ECB’s monetary policy saw the euro strengthen against the greenback.
Elsewhere, the Aussie dollar closed in on the 90 US cent handle following yesterday’s surprisingly bullish Australian trade data.
In economic news, the RBA monetary policy statement for the final quarter of 2013 is due for release at 11:30am, AEDT.