Wall Street rebounds in oversold market

US stocks posted their biggest gains in nearly two months as retail sales figures allayed fears over the economy that had driven a six-week slump in the market.

The Dow Jones industrial average gained 123.14 points, or 1.03 percent, to 12,076.11. The Standard & Poor's 500 Index rose 16.04 points, or 1.26 percent, to 1,287.87. The Nasdaq Composite Index advanced 39.03 points, or 1.48 percent, to 2,678.72.

European shares rose sharply, as data suggested the Chinese economy may avoid a hard landing, helping to ease global growth concerns.

The pan-European FTSEurofirst 300 index of top shares rose 0.8 percent to close at 1,100.86 points, though it is down 3.6 percent in June, hit by worries about the euro zone debt crisis and the pace of global economic growth.

The Nikkei average rose today, helped by sporadic buying from Asian investors and  gaining momentum after China inflation data provided no surprises. China's inflation accelerated to 34-month highs of 5.5 percent in the year to May, slightly above market expectations of a rise to 5.4 percent. In active trade, the benchmark Nikkei rose 1.1 percent to 9,547.79 and the broader Topix gained 1.3 percent to 822.86.