Global markets soar 2% on US manufacturing data

Global stocks rallied on Friday on better eurozone news and stronger-than-expected manufacturing numbers in the US.

The Dow Jones advanced 1.8% to 10,854.77 following an unexpected jump in orders for manufactured goods in August. Meanwhile, the S&P500 and Nasdaq also both climbed 1.8%.

European stocks followed suit and were further bolstered by a surprise jump in business confidence in Germany.

London's FTSE reversed morning losses to add more than 1%, or 57 points, to 5,605, while the German Dax and French Cac both advanced 1.8%, to 6,295 and 3,780 respectively.

In the US, Hewlett-Packard and Caterpillar are among the biggest movers, gaining 3.67% and 2.87% respectively.

In London, ARM Holdings led the winners, gaining more than 5.5% to 412p while Burberry Group advanced 5% to 992p. Elsewhere, there were positive afternoons for Hammerson, BT and Invensys.

Miner Antofagasta lost 1.49% to £15.22 while Admiral and National Grid also declined.