UBS AG, Europe's biggest bank by assets, and Macquarie Group Ltd., Australia's largest securities firm, gained after JPMorgan Chase & Co. increased its bid for Bear Stearns. HBOS Plc, the U.K.'s biggest mortgage lender, jumped as much as 17 percent as the company's executives bought shares. Ford Motor Co. rose in Germany after NDTV Profit reported Tata Motors Ltd. agreed to buy the Jaguar and Land Rover luxury units for $2.65 billion.
The MSCI World Index added 1.8 percent to 1,443.49 at 12:18 p.m. in London as all 10 industry groups rose. Europe's Dow Jones Stoxx 600 rallied as much as 3.3 percent after the four-day Easter break, following a 1.5 percent gain Standard & Poor's 500 Index yesterday. Futures on the S&P 500 advanced 0.3 percent today.
The MSCI World has fallen 14 percent from an October record as asset writedowns and credit losses at financial firms reached $200 billion. U.S. stocks climbed yesterday as JPMorgan's revised bid and a report showing a surprise gain in home sales last month bolstered speculation the losses may be contained.
Europe's Dow Jones Stoxx 600 Index added 3.1 percent. The U.K.'s FTSE 100 climbed 3.7 percent, and Germany's DAX increased 3.2 percent. France's CAC rallied 3.5 percent. Most markets were closed yesterday and March 21 for public holidays.
The MSCI Asia Pacific Index advanced 3.2 percent, its largest increase since Feb. 14. The S&P/ASX 200 Index surged 3.7 percent in Australia, while Hong Kong's Hang Seng Index gained 6.4 percent.