- NEW YORK: Global markets staged a relief rally on Thursday as Greece's move to enact severe austerity measures to secure an aid package eased fears that the debt crisis will spread across Europe, driving up the euro and fueling a more than 1 percent rise in equities.
With a potential resolution of Greece's debt problems insight, risk premiums eased and crude oil prices rose above $85 a barrel.
Global equities rose more than 1 percent after two days of losses, also helped by strong earnings reports and further signs of economic recovery. The Federal Reserve's positive view of the US economy on Wednesday added to an increase in sentiment.
The euro was up 0.2 percent against the dollar to $1.3243, after earlier hitting a high of $1.3280.
A better-than-expected rise in euro zone economic sentiment in April, which could boost consumer spending and consumption, also boosted investors' appetite for risk.
In the United States, data that showed the number of US workers submitting new claims for unemployment benefits fell slightly last week drew mixed views, as it implied only a gradual labor market improvement.
European stocks rose, recovering from the market's worst two-day slide in nearly three months, following a slight easing in Asian equity markets. Wall Street pushed higher.
The FTSEurofirst 300 index of top European shares closed 1.3 percent higher at 1,070.06 points Positive corporate results continued to raise investors' risk appetite, with Banco Santander up 4 percent after the euro zone's largest bank posted forecast-beating results.
The Dow Jones Industrial Average was up 131.95 points, or 1.19 percent, at 11,177.22. The Standard & Poor's 500 Index was up 15.24 points, or 1.28 percent, at 1,206.60. The Nasdaq Composite Index was up 30.19 points, or 1.22 percent, at 2,501.87.
MSCI's all-country world index of stocks rose 1.2 percent.
US crude for June delivery rose $1.81 to $85.03. ICE Brent crude for June rose $1.17 to $87.33.
US Treasury debt prices were little changed. The benchmark 10-year US Treasury note was unchanged in price to yield 3.77 percent.
Spot gold prices were unchanged at $1,164.90 an ounce.
The MSCI index of Asian stocks outside of Japan was off 0.1 percent, while Japanese markets were closed for the start of the country's long Golden Week holiday.