World stocks soared Thursday as stronger-than-expected US economic figures boosted confidence that the world's largest economy is on the mend. A mood of optimism also pervaded markets as leaders of the world's 20 top rich and developing countries met in London to find a way out of the economic crisis and the European Central Bank cut interest rates. In New York, investors dove into stocks on Thursday as global efforts to end the financial crisis fed the market's newfound optimism that the economy is on the mend. Stocks rallied across the board in heavy trading, fueled by an accounting rule change that could strengthen banks and commitments from world leaders to toughen up regulatory oversight of financial institutions. The Dow Jones industrials broke through the 8,000 level for the first time since Feb. 9. The Dow ended with a gain of more than 200 points but off its highs of the day ahead of a closely watched monthly report on employment Friday morning. The advance extended a four-week rally that has lifted the Dow 21.9 percent since early March. Bits of good news about the economy in recent weeks, including better-than expected-numbers on the housing and manufacturing sectors, have given investors more reasons to buy. The Dow rose 216.48, or 2.8 percent, to 7,978.08, after earlier rising as much as 314 points. The Standard and amp; Poor's 500 index rose 23.30, or 2.9 percent, to 834.38. The Nasdaq composite index rose 51.03, or 3.3 percent, to 1,602.63. On Thursday, industrial and coHuge gains in Asia and strong buying in Europe followed an overnight surge on Wall Street and extended last month's rebound amid tentative signs of stabilization in the hard-hit global economy and banking industry. In European afternoon trading, Britain's FTSE 100 rose 3.6 percent to 4,080.41, Germany's DAX surged 4.4 percent to 4,313.12 and France's CAC 40 jumped 3.6 percent to 2,940.91. Financial shares, a key driver behind the recent rally, surged on bets for an improving global economy and relaxation of accounting rules that have resulted in sharp hits to their balance sheets. “Relaxing mark-to-market does give the banks a little more flexibility that they can perhaps mark a few things up,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. “It's also the symbolism of the G20 that there will be coordinated efforts to stimulate the world economy.”
