European and US equity markets ignored yesterday's weakness throughout the Asian region and rallied solidly overnight.

In Europe, the FTSE added 23 points (+0.5%) whilst the CAC added 1.8% and the DAX surged 2.9%.

Stateside the Dow Jones bounced back strongly after a terrible week last week, putting on 272 points (+2.5%) to settle at 11044.

The broader S&P500 gained 2.3% whilst the tech-heavy Nasdaq underperformed the other two major indices, adding just 1.4%.

The US dollar dropped for the first time in four sessions against a basket of its peers amid rising equity markets.

The euro gained against the dollar and pared a drop that took it to a decade low against the yen.

Oil gained for a second session overnight on speculation fuel demand will increase should European officials get a handle on the region's debt problems. Crude added 0.5% to settle at US$80.24 a barrel.

Gold continued its retreat, capping the biggest three-session slump since 1983. Bullion shed 2.7% to settle at US$1595 an ounce.

In company news, RIO has increased its stake in Canada's Ivanhoe Mines to 49%.

There is no major local data due out for today's session.