U.S. STOCK MARKETS

Stocks approached their biggest one-day gain since the Fed announced new stimulus measures last month, driven higher by better-than-forecast earnings from blue chips like Johnson & Johnson and an upbeat reading from the housing sector.

The Dow Jones Industrial Average jumped 114 points, or 0.9%, to 13538, in late-Tuesday afternoon trading. Should the blue chips hold their advance, Tuesday would mark the benchmark's first triple-digit gain since Sept. 13, when the Federal Reserve announced its program to accelerate economic growth.

The Standard & Poor's 500-stock index added 12 points, or 0.8%, to 1451. Materials-sector stocks on the S&P 500 rose more than 2% to lead Tuesday's advance.

The Nasdaq Composite Index rose 32 points, or 1%, to 3096. Citigroup advanced 1.2% on heavy volume after its chief executive, Vikram Pandit, resigned.

The move comes one day after the bank reported an 88% drop in third-quarter profits, though it posted what were viewed as strong underlying earnings.

Johnson & Johnson rose 1.1% after the company's third-quarter earnings and revenue edged past expectations, while its full-year earnings outlook was in line with forecasts. Intel gained 2.4%, with the semiconductor company poised to post its quarterly results after Tuesday's closing bell.

Goldman Sachs declined 1% even after the securities firm reported third-quarter earnings and revenue that handily beat expectations, and the company raised its quarterly dividend to 50 cents a share from 46 cents.

Coca-Cola fell after the beverage company's third-quarter earnings matched estimates, though its business showed signs of slowing growth in China and Europe.

Apple gained 2.4% after the company sent out invitations to an event next week that industry watchers speculated could the launch of a new, smaller iPad tablet computer.

On the economic front, the confidence of home builders rose this month to the highest level since June 2006, according to the National Association of Home Builders.

The figure matched expectations. Elsewhere, industrial output rose last month at a pace that was slightly faster than forecasts, according to the Federal Reserve.

Consumer prices rose 0.6% last month, slightly higher than expected, as gasoline costs jumped, according to the Labor Department. Not counting food and energy costs, which tend to be volatile, consumer prices rose 0.1% last month, slightly less than expected.

EUROPEAN STOCK MARKETS

Spain led European stocks higher Tuesday, with banks pacing sharp gains after reports suggested the country is one step closer to making a formal bailout request and may get Germany's support.

The Stoxx Europe 600 index jumped 1.3% to close at 274.38, its best daily performance since Oct. 1. The positive news flow about Spain's potential bailout boosted risk-sensitive sectors such as banks and resource firms.

BBVA SA jumped 6%, Banca Popolare dell'Emilia Romagna Scarl rose 7.8% and Lloyds Banking Group PLC advanced 6.1%. Media reports said Spain is ready to formally request financial aid but that officials are delaying an announcement because of concerns about the effect on other euro-zone countries.

The reports said Spain is considering requesting a direct line of credit, rather than seeking immediate aid from the European Stability Mechanism rescue fund.

Germany is open to granting Spain a precautionary credit line to the rescue fund, Bloomberg reported, citing senior coalition lawmakers.

In Madrid, the IBEX 35 index rallied 3.4% to 7,940.20, the biggest jump since early September. Banks posted some of the biggest gains in Spain, shrugging off a recent round of ratings downgrades by Standard & Poor's Ratings Services.

Banco Santander SA rose 4.3%, Bankinter SA jumped 7.4% and Banco de Sabadell SA gained 4.2%. U.S. earnings were also in focus, with Goldman Sachs Group Inc. swinging to third-quarter profit and boosting quarterly dividends.

Meanwhile, Germany's ZEW expectations index rose to minus 11.5 points in October from a reading of minus 18.2 in September, beating analysts' estimates.

Deutsche Bank AG rose 5.1% and Commerzbank AG gained 4.1%. The DAX 30 index closed 1.6% higher at 7,376.27. And in Paris, shares of Credit Agricole SA gained 5.3%, BNP Paribas SA added 4.3% and Societe Generale SA rose 3.9%. Oil group Total SA also moved higher, up 2.7%, as oil prices wobbled.

The CAC 40 index rose 2.4% to 3,500.94. Among U.K. energy shares, Royal Dutch Shell PLC rose 1.1% and BP PLC added 1.4%. Miners were also on the rise, as most metals prices moved higher. Kazakhmys PLC added 2.8% and BHP Billiton PLC rose 1.2%.

Rio Tinto PLC climbed 2.9%, as the company said that its global mine output rose 5% in the third quarter and that it's on track to produce 250 million metric tons of iron ore this year. The FTSE 100 index picked up 1.1% to 5,870.54, with HSBC Holdings PLC up 1.8%.

ASIA-PACIFIC STOCK MARKETS

Asian markets were higher Tuesday, buoyed by strong U.S. retail sales data, while shares of Softbank Corp. recovered in Tokyo following the official announcement that it will acquire a majority stake in Sprint Nextel Corp.

Markets were still looking ahead to events Thursday for further cues. China will release third-quarter growth data Thursday, while a summit of European leaders is scheduled to commence and will be looked at for signs of progress in addressing Europe's ongoing debt crisis.

Japan's Nikkei was up 1.4% to 8701.31, its best performance for a month, as increased risk appetite helped technology shares--Kyocera Corp. added 2.7% and Shin-Etsu Chemical was up 1.9%.

The Nikkei was helped by a strong recovery in index heavyweight Softbank, which bounced back 9.6% following an official announcement that the company will buy a 70% stake in U.S. mobile carrier Sprint Nextel Corp. for around $20 billion.

Worries of share dilution were diminished when Softbank's president said that he is not planning equity finance, though shares are still down 13.8% from before news of the deal came out last week.

Hong Kong's Hang Seng Index, was up 0.3% to 21207.07 in cautious trading ahead China's growth data, with strong performances by Chinese developers: China Resources Land gained 5.1% and China Overseas Land was 2.3% higher. The Shanghai Composite ended flat at 2098.81.

Packaging products company CPMC Holdings dropped 3.5% in Hong Kong, following a top-up placement that raised HK$914.7 million, which the company says it will use to invest in a beverage can production facility in Guangzhou.

Elsewhere in the region, South Korea's Kospi was up 0.8% at 1941.54 and Taiwan's Taiex closed 0.7% higher at 7471.02.

COMMODITIES

Copper traded on the London Metal Exchange eked out modest gains Tuesday, helped by brighter U.S. economic data and a stronger euro.

Copper for three-month delivery closed afternoon kerb trade up $31, or 0.4%, at $8,125.0 a metric ton.

Copper prices marched higher on data showing U.S. industrial production ticked up 0.4% in September, while capacity utilization inched ahead to 78.3% from 78.0% the previous month.

Meanwhile, U.S. homebuilders' confidence rose to the highest level since the housing market downturn. Crude oil futures prices inched up to settle at a one-week high Tuesday, awaiting direction from upcoming U.S. oil inventory data.

Light, sweet crude oil futures for November delivery on the New York Mercantile Exchange settled up 24 cents, at $92.09 a barrel, after swinging in a $1.02-a-barrel high-low range.

On the IntercontinentalExchange, Brent crude oil for November expired 73 cents lower, at $115.07 a barrel. Gold futures rebounded in thin trading, as a weaker U.S. dollar and hopes that Spain was moving toward a bailout request drew buyers back to the precious metal.

The most actively traded contract, for December delivery, rose $8.70, or 0.5%, to settle at $1,746.30 a troy ounce on the Comex division of the New York Mercantile Exchange. Compiled from MORRISON SECURITIES PTY. LTD.