LONDON: Wall Street readied to join rising global shares which hit their highest level in three weeks on Thursday, underpinned by hopes of that turmoil in the banking sector is over as investors switch to reviewing their end of quarter positions.
Receding inflation in Spain and Germany helped government bonds in the euro zone.
Markets were also looking for guidance on the trajectory for interest rates from the Federal Reserve's most preferred inflation gauge due on Friday, the personal consumption expenditure (PCE) index, and US non-farm payrolls next week.
The dollar was a touch weaker, while crude oil prices rose after a surprise drop in US stockpiles.
Global stocks were up 0.3% at three-week highs and on course for a 4.9% quarterly gain.
"The next few days are going to be a key test of this stabilisation with month-end, and quarter-end, coming up when you have a lot of funds doing a tidy up, then suddenly it's where do we go from here?" said Mike Hewson, chief markets analyst at CMC Markets.
In Europe, the STOXX index of 600 leading companies rose 1.3% to hit a two-week high.
US stock index futures were about 0.5% firmer. The rates-sensitive Nasdaq is up nearly 14% this year and heading for its best quarter in more than two years.
As the dust settles on a wild and volatile ride after Silicon Valley Bank's collapse unleashed fears of a broader banking crisis, the winners appear to be bonds and large tech companies that tend to benefit when interest rates fall.
Kevin Thozet, investment committee member at Carmignac, said investors were taking stock after a volatile quarter of big swings in the outlook for the economy, inflation and interest rates.
"We are seeing a correlation between risk on and risk off assets working again, which was not the case a year ago," Thozet said, adding the trajectory of hiking interest rates was coming to an end.
"We think there is value is being long in duration, in buying those bonds issued by well-rated issuers in the US or in the euro area," Thozet said._Reuters
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