The Dow Jones industrial average rose 131.95 points, or 1.33 percent, to 10,081.31. The Standard & Poor’s 500 Index rose 11.51 points, to 1,092.91. The Nasdaq Composite Index added 14.56 points, or 0.68 percent, to 2,165.29. In early trade on Friday Stock index futures pointed to sharp gains for European shares, after a rise in financial stocks helped the Dow close back above 10,000. The benchmark Nikkei gained 15.82 points to 10,282.99, with investors locking in profits before Japan’s earning season moves into high gear next week.The Topix, which is not as tech-heavy, lost 0.7 percent to 902.03.

By the middle of next week the European Commission (EC) is expected to approve plans to split Northern Rock into a “good” and “bad” bank, paving the way for the break-up and sale of the nationalised bank. China saw its annual rate of GDP growth pick up in the third quarter as a combination of breakneck investment and buoyant bank lending compensated for a slump in exports. Growth increased to 8.9 per cent in the third quarter, from 7.9 per cent last quarter. The figures came a day after the government said recovery in the world’s third-largest economy had now been “consolidated”.

Due for release today there is the EUR German IFO – Business Climate, EUR German IFO – Current Assessment, EUR German IFO – Expectations, GBP Gross Domestic Product, GBP BBA Loans for House Purchase, USD Fed’s Bernanke Speaks on Regulation at Boston Fed Conference.