Bucking the trend were shares of Pfizer, Johnson & Johnson, and Merck-down 2.5 per cent, 2 per cent and 1.6 per cent respectively-after US President-elect Donald Trump told Time magazine he planned to lower the cost of prescription drugs.
"I think it is a new fact of life going forward, that fundamentals can be swept aside any day by comments from the [President-elect]," David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management, told Reuters.
In Europe, the Stoxx 600 Index ended the day with a 0.9 per cent gain from the previous close.
France's CAC 40 Index advanced 1.4 per cent, the UK's FTSE 100 Index rallied 1.8 per cent, while Germany's DAX Index jumped 2 per cent.
Underpinning the rally were bets that the European Central Bank will announce an extension of its asset purchase program at the end of a policy meeting on Thursday.
In Europe, cheaper valuations add to the appeal for some.
"Though we're not raging bulls on Europe, it's a region we now strongly prefer over the US," said Alan Mudie, head of investment strategy at Societe Generale's private banking unit, at a briefing in London, Bloomberg reported.
"It's not just because of valuations, it's also the fact that Europe is more geared to the improving global economy. That was a curse this year but will be a big benefit in 2017."
Oil prices fell amid concern US shale producers might raise output next year, while OPEC agreed to reduce production.
"It's going to be a cat and mouse game between OPEC and shale oil in America," Glencore Chief Executive Officer Ivan Glasenberg said this week, according to Reuters.
"OPEC members will say, 'if you [raise output], we are going to ramp up production and push oil back down to $35'," Glasenberg said. "I hope shale in America will be responsible and realise what's happened and allow the higher oil price to be sustained."
