The euro rose from multi-year lows for a second straight day, boosted by renewed optimism that Europe's debt crisis will not put the brakes on global growth, and as traders continued to book profits following the currency's slide.

The keener appetite for risk drove crude oil prices up 4 percent above $74 a barrel, as US data that showed a hefty drawdown in crude oil inventories added to the picture of rising demand.

Chinese exports grew 50 percent in May from a year earlier, according to sources, well above expectations for growth of 32 percent. The unofficial data was seen as a sign that the economy of the world's second-largest oil user was roaring ahead. China is to report the official export data on Thursday as part of broader trade data.

The Dow Jones Industrial Average was up 108.68 points, or 1.09 percent, at 10,048.66. The Standard & Poor's 500 Index was up 12.74 points, or 1.20 percent, at 1,074.74. The Nasdaq Composite Index was up 29.53 points, or 1.36 percent, at 2,200.10.

Tech lifted the Nasdaq after Texas Instruments Inc said second-quarter earnings and revenue would be at the high end of its forecast on strong broad-based demand, particularly from industrial customers.

The stock gained 1.7 percent to $24.28 while the PHLX Semiconductor index rose 2.2 percent.

The MSCI's all-country world stock index rose 1.3 percent.

The pan-European FTSEurofirst 300 index closed up 18.09 points at 998.44 points.

The China data, as well as a weaker dollar, helped oil and and metal prices gain, boosting commodity shares. Among gainers were miners Anglo American, BHP Billiton, Fresnillo, Rio Tinto and Xstrata and energy shares Total, Repsol and StatoilHydro .

BP, however, fell 4.3 percent to its lowest close since since October 2008 as traders cited concern over its dividend payment.

The euro rose against the dollar for a second straight session, boosted by options-related demand and renewed market hopes that Europe's debt crisis may not put the brakes on global growth.

The euro was up 0.57 percent at $1.204, after falling below $1.19 on Monday, its weakest since 2006. The euro has shed nearly 16 percent against the dollar so far this year.

Few were ready, however, to declare the currency's woes over. Banks' overnight deposits at the European Central Bank hit a record on Wednesday, highlighting widespread worries about the health of the financial system.

Steven Butler, head of FX trading at Scotia Capital, said that while the euro in the short term could reach $1.2110, "I still think there's downside."

"And overall, this move over the past few months has seen new lows hit, then consolidation and a nasty bounce back before we make another assault downward," he added.

Traders said option expires at $1.1900 and $1.1850 added to euro demand as investors bought the currency to protect their positions.

Investors were also awaiting a European Central Bank policy meeting on Thursday to see if the ECB will announce fresh steps to ease strains from the euro zone's debt crisis.

The ECB is also expected to publish a new set of economic forecasts for the region that are likely to signal somewhat stronger activity, despite worries that debt problems and government austerity measures will sharply brake growth.

World oil prices surged on Wednesday. New York's main futures contract, light sweet crude for delivery in July, jumped $2.85 to $74.84 a barrel.

Brent North Sea crude for July leapt $2.25 to $74.55 per barrel in late afternoon London trade.