International markets rallied over the last 24-hours, with investors betting that the US Federal Reserve will take further steps to stimulate the economy.

The gains permeated in the Asian region yesterday, before spreading to the Europe and US.

The FTSE added 0.7%, whilst the CAC and DAX added 1.1% each.

Stateside, markets really took off; the Dow Jones added 322 points (+3%), whilst the broader S&P 500 added 3.4% whilst the tech-heavy Nasdaq added 4.3%.

It was actually another soft round of economic data which caused the market to rally.

The Richmond Fed's regional manufacturing survey showed a sharp decline in economic activity this month whilst new home sales also dropped for a third consecutive month, falling to the lowest level since February.

Normally such data would lead to a selloff but investors now believe, even more firmly, that the Fed must and subsequently will, intervene.

The US dollar fell against 16 of its most-traded peers as bets the Bernanke will further prop up the economy dampened demand for the safe-haven greenback.

Conversely, the Aussie and Kiwi dollars rallied against the greenback amid a return of risk appetites.

Gold suffered heavy falls overnight, dropping the most in a year. Bullion for December delivery slumped $30.60 (-1.6%) to settle at US$1861.30 an ounce.

Oil rose for a second session amid the Fed stimulus speculation. Crude for October delivery rose $1.02 to settle at US$85.44 a barrel

Today's session will bring us data in the form of the CB leading index (10:00am, AEST) and construction work done (11:30am, AEST).