Optimism in the U.S sent global markets higher overnight, as economic news from the world's largest economy topped expectations.

European stocks climbed for a third session, the longest winning streak for the Stoxx 600 in five weeks, as a report showed that U.S. consumer spending rebounded last month. The Stoxx 600 climbed 0.7% to 286.4 at the close after earlier declining as much as 0.3%.

In London, the FTSE 100 added 78 points (+1.3%) to close at 6243, while the German DAX put on 50 points (+0.6%) to finish at 7991.

In the U.S. the S&P 500 locked in its biggest three-session rally since January, on better-than-estimated economic data and assurances on stimulus efforts from Federal Reserve officials.

The S&P 500 advanced 10 points (+0.6%) to 1,613, while the Dow Jones tacked on 114 points (+0.8%) to settle at 15,024.

Consumer spending in the U.S. rebounded in May following the largest drop in more than three years. Household purchases, which account for about 70% of the economy, rose 0.3% after a 0.3% decline the prior month. Incomes advanced 0.5% – more than projected.

Fed Bank of New York President William C. Dudley said in New York that the central bank may prolong its asset-purchase program if the economy's performance fails to meet its forecasts.

Gold futures tumbled below $1,200 an ounce at one point, extending a slump to a 34-month low, as U.S. economic data topped estimates by analysts, eroding the metal's appeal as a store of value.

Gold recovered slightly off its lows to close 1.5% weaker, at $1,211.60 on the Comex in New York.

Crude oil climbed for a fourth session as U.S. refiners boosted crude processing to the highest rate this year and industrial profits increased in China, the world's second-largest oil consumer.

Crude for August delivery rose as much as 64 cents to $96.14 a barrel in electronic trading on the New York Mercantile Exchange.

The yen fell against all 16 of its major peers as Federal Reserve officials' statements that the economic recovery isn't strong enough to start tapering bond-buying boosted speculation that Japan's currency will be more responsive to the country's own stimulus efforts.

The Reserve Bank of Australia will release its monthly Private Sector Credit Report today at 11:30 am.

Morning Market Update: EOFY is a post from: Australian Stock Report Market Pulse Blog