Equity investors enjoyed a broad rally ahead of a European summit aimed at resolving the region's sovereign debt crisis, even as officials tried to temper expectations of a quick and easy solution.
Britain's FTSE 100 gained 1.2 per cent, France's CAC 40 rose 1.3 per cent and Germany's DAX climbed 1.5 per cent. Japan's Nikkei rose 0.4 per cent and Hong Kong's Hang Seng gained 1.3 per cent.
U.S. stock futures pointed north as well. Dow futures gained 30 points, or 0.3 per cent, trading at 11,556, while S&P 500 futures rose 2.2 points, or 0.2 per cent, to 1,225.30.
One company that missed out on the rising market was Apple Inc., which stunned investors after the market close on Tuesday with quarterly results that missed expectations for the first time in years. Its stock fell 7 per cent in after-hours trading, wiping some $27-billion (U.S.) off the value of the world's largest technology company.
The rally began after Britain's Guardian newspaper reported that France and Germany had agreed on a deal to increase the euro zone bailout fund's firepower fivefold. Two senior European Union officials later denied the report.
German Chancellor Angela Merkel said the meeting would be an important step, but warned one summit would not be enough to resolve the crisis.
The comments came as Moody's cut Spain's sovereign ratings by two notches, saying high levels of debt in the banking and corporate sectors have left the country vulnerable to funding stresses.
Still, gold slid as investors sought riskier assets, but a softer U.S. dollar helped provide some support. Spot gold was bid at $1,652.79 a troy ounce.
U.S. crude oil gained 32 cents, trading at $88.66 a barrel.
The Canadian dollar rose to 99.06 U.S. cents.