Wall Street rose overnight after controversial candidate Larry Summers withdrew his bid to replace Ben Bernanke as the next Federal Reserve chairman.
The Dow Jones Industrial Average added 0.77 per cent to 15,495 points
The S&P 500 ended at a six-week high, after rising 0.57 per cent to 1,698.
The withdrawal of Mr Summers, a former Treasury Secretary, gives markets comfort.
Mr Summers is known to be an opponent of prolonging the economic stimulus program in the US, so his exit increases the chance of a more gradual winding down.
Wall Street is still expecting the Fed to announce a small amount of tapering to its current program this Wednesday at its Federal Open Market Committee meeting.
Across the Atlantic, the FTSE 100 also closed at a six week high, rising 0.6 per cent to 6,622.
In company news, investors will be able to bid for shares in major UK bank Lloyds after the British Government put 6 per cent of the bank up for sale.
The stake should net taxpayers around $5.6 billion and reduce the Government's holding to 32.7 per cent.
The International Monetary Fund is warning that the current era of record low interest rates and low inflation is fuelling house-price bubbles.
The IMF wants to see tighter lending standards around to world to rein-in a rising exposure to property prices, which could have damaging consequences if the bubble bursts.
The Australian dollar fell overnight, and at 7:50am (AEST) it was worth 93.21 US cents.
Global oil prices are down as the weekend's US-Russian deal on Syria eased market concerns about Middle East supplies.
West Texas Crude dropped from $108.29 to $US106.52.
Singapore's Tapis crude price closed at $US116.85.
The spot gold price also fell overnight, it finished trade at $US1,312.99 an ounce.
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