Wall Street found reasons to rally as Cisco's results surpassed expectations, the latest US economic data surprised on the upside and German Chancellor Angela Merkel signalled conditional support for ECB bond buying.
US residential building permits rose to an 812,000 annual rate in July, the highest level since August 2008, yet another sign that the nation's flagging housing market may be set to rebound.
A separate report showed that the number of Americans filing applications for unemployment benefits was steady last week, providing a welcome sign of decent news for the labour market.
"It's certainly further evidence the labour market doesn't look like it's in danger of falling off a cliff," Jeremy Lawson, senior US economist at BNP Paribas in New York, told Bloomberg News. "At the same time, the hiring rate is still fairly soft."
Indeed, the latest data kept alive hopes that the US Federal Reserve might see a reason to aid the pace of expansion sooner rather than later by trying to make it easier for companies and consumers to borrow money.