European stocks and U.S. stock futures pushed higher, driven by signs of a stronger economy and hopes that Europe would move closer to resolving its sovereign debt crisis.
Dow futures gained 108 points, or 1 per cent, rising to 11,438 about two hours before Wall Street opened for business. S&P 500 futures rose 11.2 points, or 0.9 per cent, to 1,200.80.
Britain's FTSE 100 gained 0.5 per cent, France's CAC 40 rose 1.5 per cent and Germany's DAX gained 1.4 per cent. Mining stocks led the rally, after copper prices rose more than 2 per cent on signs of strong demand from China.
The rally came despite Slovakia's decision to vote against a measure to strengthen Europe's bailout fund and weaker-than-expected earnings from Alcoa Inc.
Industrial production in the 17 euro countries unexpectedly rose during August, easing concerns that the euro zone was heading back into recession in the third quarter. Eurostat said output increased by 1.2 per cent, in contrast to expectations of a 0.8 per cent decline.
Investors also awaited an announcement by the European Union on a bank recapitalisation plan later in the day that is designed to cushion the impact of a possible default by Greece on the region's banks.
Also on the radar is a Wal-Mart Stores Inc.'s annual meeting with analysts, where the retailer is likely to outline plans to reverse a slump in its U.S. sales, its strategies for the winter, and capital spending plans.
Gold rose $23.70 (U.S.) an ounce to $1,684.70.
West Texas Intermediate crude oil gained 43 cents a barrel to trade at $86.24.
The Canadian dollar strengthened to 98.41 U.S. cents.
Japan's Nikkei closed 0.4 per cent lower, while Hong Kong's Hang Seng gained 1 per cent.