Wall Street rallies after labor market data

Global stocks gained on an improving US jobs picture and data that showed China's economy regaining some traction.

The S&P 500 scored its best day in seven weeks on Thursday as bullish consumer confidence and private-sector jobs data gave investors reason to cheer following superstorm Sandy's devastating sweep through the US Northeast.

The Dow Jones industrial average gained 136.16 points, or 1.04 percent, to 13,232.62 at the close. The Standard & Poor's 500 Index shot up 15.43 points, or 1.09 percent, to finish at 1,427.59. This was the S&P 500's biggest daily percentage gain since Sept. 13, when the Federal Reserve unveiled its plan for a third round of stimulus or quantitative easing, also known as "QE3."

The Nasdaq Composite Index jumped 42.83 points, or 1.44 percent, to close at 3,020.06.

Investors set aside growth worries as European shares clawed back the previous session's losses, buoyed by corporate earnings and better macro economic data in China and the United States.

The FTSEurofirst closed up 13.61 points, or 1.2 percent, at 1,109.99, having fallen 0.6 percent on Wednesday.

Telecoms and financials were among the top gainers after results from BT Group, Lloyds Banking Group and Legal & General lifted sentiment in their respective sectors.