European stocks rallied as banks led the way, and U.S. stocks appeared ready to open higher amid thinning year-end volume.
Britain's FTSE 100 rose 1.1 per cent, France's CAC 40 gained 1.3 per cent, and Germany's DAX was 1.1 per cent higher.
Dow futures rose 53 points, or 0.4 per cent, to 12,077, while S&P 500 futures gained 5.9 points, or 0.5 per cent, trading at 1,242.20 about two hours before the New York Stock Exchange opened.
Financial stocks led the European market recovery amid indications that the nearly half a trillion euros banks borrowed from the region's central bank on Wednesday will ease funding strains. The scale of the funding operation initially aggravated concerns about the health of the financial system but was increasingly regarded as having eased pressure on the banks.
Key euro zone bank-to-bank lending rates fell in response to the lending operation. Three-month Euribor rates, traditionally the main gauge of unsecured interbank euro lending, fell to 1.410 per cent from 1.416 per cent. Longer-term rates also fell.
The euro steadied near $1.3055 (U.S.).
Japan's Nikkei fell 0.7 per cent, while Hong Kong's Hang Seng dipped 0.2 per cent. Global stocks, as measured by MSCI world equity index edged up 0.2 per cent.
Italian 10-year bond yields were about 3 basis points lower at 6.79 per cent. Equivalent Spanish paper was yielding 5.36 per cent, about 5.0 basis points higher.
The cost of insuring Hungary's debt against default jumped sharply after Standard & Poor's cut the country's rating to junk, highlighting another vulnerable point in the European region.
Britain's economy grew by a slightly better than anticipated 0.6 percent in the third quarter, after unexpectedly stalling in the previous three month period, official figures showed Thursday.
Gold edged lower to $1,612.50 an ounce.
Oil rose above $99 a barrel.
The Canadian dollar traded higher at 97.63 U.S. cents.