International equity markets finished collectively stronger overnight amid optimism that a compromise can be reached regarding the US fiscal cliff.

US Senator, Chuck Schumer, and Senate Majority Leader, Harry Reid, gave the market a boost after they mentioned that there has been progress in the budget discussions.

In Europe, the UK's FTSE climbed 67 points (+1.2%) to settle at 5870 whilst Germany's DAX increased 58 points (+0.8%) to settle at 7401. France's CAC added 54 points (+1.5%) to settle at 3569.

In the US, the Dow Jones rose 37 points (+0.3%) to settle at 13022 whilst the S&P added six points (+0.4%) to settle at 1416. The Nasdaq climbed 20 points (+0.7%) to settle at 3012.

In the commodity space, crude oil for January delivery rose $1.58 to settle at $88.07 a barrel after reports showed that US GDP grew 2.7% in the third quarter-higher than the expected 2%.

Gold for February delivery advanced 0.6% to settle at $1729.50 an ounce on speculation that the Federal Reserve will buy bullion to shore up its reserves.

In the currency space, the Japanese yen fell against the euro due to concerns that opposition leader, Mr. Shinzo Abe, will be elected as the country's Prime Minister after the elections on 16 Dec 2012.

The euro strengthened against the yen and the US dollar after Italy successfully raised six billion euros at lower borrowing costs. The US dollar fell against the euro as investors shunned safety for risk. Today will see the release of the private sector credit data (11:30am, AEDT).

Morning Market Update: Bulls Run On is a post from: Australian Stock Report Market Pulse Blog