The Dow Jones industrial average rose 124.17 points, or 1.28 percent, to end at 9,789.36. The Standard & Poor’s 500 Index gained 18.60 points, or 1.78 percent, to 1,062.98. The Nasdaq Composite Index rose up 39.82 points, or 1.90 percent, to 2,130.74. Yesterday U.S. stocks rallied, breaking a three-day losing streak, as a spurt of corporate takeovers in the technology and health-care sectors fueled optimism about share values. The FTSEurofirst 300 of top European shares closed up at 1,001.42 points. The benchmark Nikkei gained 95.16 points to 10,104.68. The broader Topix added 0.3 percent to 905.24.

 The recent mergers and acquisitions activity in US stocks are being viewed as a bullish signal, as it suggests companies are more optimistic about the business outlook. The International Monetary Fund has boosted hopes for an early exit from recession by saying  in the next few days it will raise its global growth forecasts. A Chinese state-owned oil company is in talks with Nigeria to buy large stakes in some of the world’s richest oil blocks. Yesterday, the yen hit an eight-month high against the dollar after Japan’s finance minister appeared to tone down comments, which suggested he would intervene to stem its recent rise. Yesterday, the former Lord Mayor of London Sir David Brewer said, Uk Banks should turn to China’s burgeoning economy in their search for lucrative new business.

Due for release today there is the GBP Gross Domestic Product, GBP Current Account, GBP Mortgage approvals, GBP Net Consumer Credit, EUR Euro-Zone Economic Confidence, EURO Euro-Zone Business Climate Indicator, EURO Euro-Zone Consumer Confidence, USD Consumer Confidence and JPY Industrial Production.

By Greg Secker