GDP figures show US economy still growing
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Revised gross domestic product data in the US shows the economy grew by 3.3 per cent in the second quarter compared to the same time last year, helped by strong exports.
The US economy grew by 0.9 of a per cent in the first three months of the year.
But it is not all good news, with other figures revealed that the number of Americans collecting unemployment benefits has reached a five-year high.
The number of people on jobless claims rose to 3.4 million, the highest level since November 2003.
The Dow Jones Industrial Average put on 213 points or nearly 2 per cent to 11,715.
Computer maker Dell says second quarter net income fell 17 per cent to $US616 million, worse than expected.
The Nasdaq composite index rose 29 points to 2,412.
The economic growth data from the US boosted sentiment in Europe, which was also helped by a fall in the price of oil.
The FT-100 increased 73 points to 5,601.
Private sector data showed that UK house prices fell almost 2 per cent in August, down 10 per cent from a year ago and the biggest annual fall since 1991.
To overnight trade on the Sydney Futures Exchange and the Share Price Index 200 Contract for September is up 81 points to 5,142.
The 10-year bond contract is steady at 94.26.
Yesterday, the All Ordinaries index gained 55 points to 5,143.
The ASX 200 increased by the same amount to 5,067.
The market was bolstered by rises in commodity prices.
The Australian dollar is higher against the greenback, and about 7:00am AEST, it was buying 86.25 US cents, 0.5857 euros, 94.34 Japanese yen, 47.04 pence Sterling, and against the New Zealand currency it was at $NZ1.22.
Spot gold was higher at $US833.50 an ounce.
West Texas Crude oil was down $2.56 to $US115.59 a barrel.
