Global markets rallied overnight following reassurance by the Federal Reserve that tapering will not happen as soon as speculated.

European stocks advanced to their highest level in more than five weeks after Fed Chairman Bernanke said that the U.S. economy will continue to need stimulus measures.

The Stoxx 600 increased by 0.6% to 297 at the close of trading. In London, the FTSE 100 added 39 points (+0.6%) to close at 6543 while the German DAX put on 92 points (+1.1%) to settle at 8159.

U.S. stocks jumped, sending the S&P 500 to a record closing level, as the Fed backed sustained monetary stimulus.

The S&P 500 gained 22 points (+1.4%) to close at 1675, erasing losses since Bernanke first suggested the Fed might curb stimulus this year. The Dow Jones jumped 169 points (+1.1%) to settle at 15461.

Gold futures rallied to a two-week high after the Fed's comment that the U.S. needs "highly accommodative monetary policy for the foreseeable future."

Bullion for August delivery climbed 2.6% to settle at $1279.90 an ounce on the Comex in New York.

Crude oil slipped from a 15-month high as more Americans than expected filed for unemployment benefits and the International Energy Agency predicted global supply will outstrip demand growth. Crude for August delivery declined by 1.5% to settle at $104.91 a barrel on the New York Mercantile Exchange.

The Australian Bureau of Statistics will release its monthly Home Loans Report, at 11:30 am today.

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