Global markets rallied overnight following a U.S. report that economic growth was smaller than originally estimated eased concerns about the Federal Reserve pulling back on its stimulus program.

European stocks advanced as China's cash crunch eased and German consumer confidence topped forecasts.

In addition to this, the European Central Bank President Mario Draghi said they'll maintain a loose monetary stance for as long as needed, while urging euro area governments to cut their deficits and boost investment.

The Stoxx 600 made its biggest two-day gain in almost 11 months, soaring 1.7% to 284.5 at the close of trading. In London, the FTSE 100 climbed by 64 points (+1%) to settle at 6,165 while the German DAX put on 130 points (+1.7%) to close at 7,941.

U.S. stocks rose, sending the S&P 500 higher for a second day, as China's cash crunch eased and slower-than-forecast economic growth fueled speculation the Federal Reserve will maintain stimulus.

Growth in the world's largest economy was less than originally estimated in the first quarter as an increase in the U.S. payroll tax took a bigger bite out of consumer spending than previously calculated.

The S&P 500 increased 15 points (+1%) to 1,603, a rally of 1.9% over two days, after slumping to a nine-week low on June 24. The Dow climbed 150 points (+1%) to 14,910.

Gold plunged to a 34-month low and is set for a record quarterly drop, as improving U.S. economic data strengthened the case for the Federal Reserve to reduce stimulus.

Bullion futures for August delivery dropped 3.6% to settle at $1,229.80 on the Comex in New York.

Crude oil rose for a third session, advancing with equities on speculation the Federal Reserve will maintain stimulus after a report showed slower-than-estimated economic growth. Crude for August delivery rose by 18 cents to $95.50 a barrel on the New York Mercantile Exchange.

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

Morning Market Update: US Rallies Overnight is a post from: Australian Stock Report Market Pulse Blog