Global stocks posted their biggest daily percentage gain in 2 months while the dollar weakened for 3 consecutive sessions.
The market is focused on the expectation that the European Central Bank (ECB) will implement an interest rate increase of up to 50 basis points at Thursday's meeting while the Federal Reserve (Fed) of the United States (US) is understood not to consider a 100 basis point increase.
Joe Manimbo of Western Union Business Solutions comments, trans-Atlantic monetary policy is seen to be shifting and this is in favor of the Euro.
Anthony Saglimbene from Ameriprise Financial added that the expectation of the Fed choosing to raise 75 points instead of 100 basis points added to investors' appetite in the market.
The streak Wall Street entered the rally with the Dow Jones Industrial rose 2.43% to 31,827.05, the S&P 500 gained 2.76% to 3,936.57 and the Nasdaq Composite added 3.11% to 11,713.15.
The pan-European STOXX 600 index rose 1.38% as European gas news eased while MSCI's gauge of worldwide shares posted its biggest daily percentage gain to reach 2.05%.
Total currency flows saw the dollar index fall 0.66% with the Euro up 0.81% at $1.0223 and the Japanese Yen trading stronger than last week at $138.16.
The benchmark 10-year note fell 17/32 in price to yield 3.0209% from Monday's note at 2.96%.
As for commodities, oil prices rebounded in a volatile trading session as the market weighed the possibility of a slowdown in demand behind supply tightening.
It has sent US crude up 1.58% at $104.22 and Brent crude up 1.02% at $107.35.
