Premarket: Growth on, risk on

Germany and China gave investors reasons to put their faith in growth, with stocks rallying across the world following positive economic readings.

Britain's FTSE 100 gained 0.6 per cent, France's CAC 40 rose 1.3 per cent, and Germany's DAX gained 1.7 per cent. Japan's Nikkei rose 1.1 per cent, while Hong Kong's Hang Seng leapt 3.2 per cent.

U.S. stock markets, re-opening after the weekend and Martin Luther King., Jr. Day, were poised to rise as well. Dow futures gained 89 points, or 0.7 per cent, at 12,479. S&P 500 futures rose 9.7 points, or 0.8 per cent, to 1,298.60.

January's survey of German economic sentiment by the ZEW think tank posted its biggest ever monthly rise, easing fears of a recession in Europe's largest economy. It indicated that economic activity should stabilize over the next six months.

The euro jumped to a session high of $1.2800 (U.S.), about 1 per cent higher on the day.

The data followed earlier numbers from China showing the world's second-largest economy grew by 8.9 per cent in the fourth quarter of 2011, beating a forecast of 8.7 per cent by economists polled by Reuters, although growth was at the slowest pace in 2-1/2 years. That may make economic stimulus more likely.

Copper rose by about 2 per cent to hit its highest level in almost three months, trading around $8,262 a tonne.

Also aiding sentiment was a Spanish debt auction, where borrowing costs plummeted and demand outstripped supply by more than three times. Spain's borrowing rates fell to 2.049 per cent from 4.050 per cent for 12-month debt and to 2.399 per cent from 4.226 per cent for 18-month debt.

Meanwhile, thousands of angry Greek workers marched to parliament to protest against austerity measures as Athens' lenders arrived for talks to avert bankruptcy. Greece's private-sector creditors have warned that the government must break a deadlock in negotiations on a debt-reduction plan to avoid a disorderly default when a major bond redemption comes due in late March.

Gold climbed to its highest level in five weeks. U.S. gold futures for February delivery were up $32.20 an ounce at $1,663.00.

The Canadian dollar rose to 98.63 U.S. cents.