World markets surged on Wednesday following an unexpected jump in US manufacturing data and bullish economic figures from Asia.
The Dow Jones climbed more than 250 points, or 2.51%, to 10,265.61 after just two hours of trading, while the broader S&P 500 jumped 2.78% and the tech-heavy Nasdaq soared 2.94%.
Global stocks are also seeing their best rise since May, with the MSCI World Index adding 2.8% by 11am New York time.
London's FTSE posted triple-digit gains, advancing 141 points, or 2.7%, to 5,366, its strongest daily performance since 6 July. Elsewhere, the French Cac and German Dax also soared.
M&A rumours boosted most of the top FTSE performers. TUI Travel closed 7.5% higher following reports majority shareholder TUI AG was considering buying the shares in the company it does not already own.
The jump in equity markets has hit bond yields, with the benchmark 10-year Treasury rising 12 basis points to 2.6%.
Much of the positive sentiment has come from the crucial Institute for Supply Management manufacturing index reading, which rose from 55.5 in July to 56.3 in August. Economists polled by Thomson Reuters had forecasted a weaker reading of 53.
In addition, markets were boosted by a tick-up in the Beijing-backed purchasing managers' index, while the Australian economy grew a seasonally-adjusted 1.2%in the April-June quarter, largely driven by a rise in commodities exports.
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