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Pepper spray, gunshots, market rally -- what's not to love about Black Friday? Stronger-than-expected U.S. retail sales and rumours of imminent aid for Europe's indebted countries lifted global stocks in a broad wave.

Britain's FTSE 100 gained 2.1 per cent, France's CAC 40 surged 3.7 per cent and Germany's DAX rose 3.3 per cent. Japan's Nikkei gained 1.6 per cent, while Hong Kong's Hang Seng rose 2 per cent.

Dow futures were 249 points, or 2.2 per cent, higher at 11,436 about two hours before the New York Stock Exchange opened for business. S&P 500 futures rose 33 points, or 2.9 per cent, to 1,186.4.





Mining and energy companies gained with commodities after U.S. holiday sales climbed to a record, rising at the fastest rate since 2007 and raising hopes for economic growth.

Gold rose $27.70 (U.S.) to $1,716.20 an ounce.

U.S. crude gained $3.07, trading at $99.84 a barrel.

Copper was up 2.3 per cent at $7,434 a tonne.

The Canadian dollar climbed to 97.78 U.S. cents.

Banks gained after draft guidelines showed that the European Financial Stability Facility may insure the bonds of troubled countries with guarantees of 20 per cent to 30 per cent of each issue. Finance ministers will discuss the recommendations this week.

The euro rose after German Finance Minister Wolfgang Schaeuble called for tighter budget discipline and as speculation mounted that policy makers are planning to provide more aid for Italy. Italian newspaper La Stampa said the International Monetary Fund is preparing a 600-billion-euro loan for Italy, a report that the IMF denied.

Germany also said it has no plans to float bonds together with the euro zone's five other triple-A-rated nations and use the proceeds to provide assistance to some of the single currency bloc's indebted members, such as Italy and Spain.

Moody's Investors Service warned that the rapid escalation of the euro zone crisis threatens the credit standing of all European government bond ratings.

The global economic recovery is running out of steam, leaving the euro zone stuck in a mild recession and the United States at risk of following suit, according to the twice-yearly OECD report, in which the group sharply cut its growth forecasts.

Bond investors reacted by pushing 10-year Bund yields up 5 basis points to 2.32 per cent, reflecting concerns that Germany could end up footing the bill to save the euro zone.

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