Global stocks rally on Bernanke comments

The S&P 500 rebounded from its worst week so far this year to retake a four-year high on Monday after Federal Reserve Chairman Ben Bernanke signaled supportive monetary policy will remain even though the job picture has begun to improve.

The three major US stock indexes climbed 1 percent or more and all 10 S&P 500 sectors advanced. Gains were led by S&P technology shares, with that sector's index up 1.7 percent, and the S&P health care sector index also up 1.7 percent. Shares of International Business Machines, up 1.1 percent at $207.77, gave the Dow its biggest boost.

The Dow Jones industrial average shot up 160.90 points, or 1.23 percent, to 13,241.63 at the close. The Standard & Poor's 500 Index gained 19.40 points, or 1.39 percent, to 1,416.51. The Nasdaq Composite Index climbed 54.65 points, or 1.78 percent, to 3,122.57.

European shares edged higher, buoyed by improved German business sentiment and investor belief the uptrend in stock markets would be underpinned by an extension of easy US monetary policy.

The pan-European FTSEurofirst 300 index of top shares closed up 0.9 percent at 1,089.00. The Euro STOXX 50 , meanwhile, rose 0.6 percent.

Japan's Nikkei share average edged higher today, recovering from last week's retreat, as investors bought metal shares and picked up laggard blue chips, with a softer yen continuing to underpin market sentiment.         

The Nikkei closed 0.1 percent higher at 10,018.24 points after logging its biggest one-day percentage fall in two months, while the broader Topix index was down 0.1 percent at 851.82.