Global Stocks recover on Boehner 'fiscal cliff' comment

US and European stocks recovered from early losses to post gains today as investors shifted into buying mode after perceived positive news on US budget talks.

US stocks rose in volatile trade after comments from the top Republican in Congress on a possible compromise to avoid the "fiscal cliff" gave investors some reason to hope and turned the market around.

The Dow Jones industrial average gained 106.98 points, or 0.83 percent, at 12,985.11. The Standard & Poor's 500 Index was up 10.99 points, or 0.79 percent, at 1,409.93. The Nasdaq Composite Index added 23.99 points, or 0.81 percent, at 2,991.78.

European shares recovered to close slightly higher, hauled up with US stocks on signs that lawmakers in the United States will be able to avert the "fiscal cliff" that threatens its economy.

The FTSEurofirst 300 index closed 0.2 percent higher at 1,109.27 points, after falling to a low of 1,100.79 earlier in the session, supported by a 0.5 percent gain in chemical shares. The euro zone's blue chip Euro STOXX 50 index was up 0.1 percent at 2,546.84.