S&P 500 set for largest monthly rise since 1974

The Dow Jones and S&P 500 surged yesterday as market sentiment was lifted by US growth almost doubling in Q3.

GDP growth jumped from 1.3% to 2.5% while the market was also buoyed by eurozone ministers thrashing out a deal to resolve the region's debt crisis.

In reaction shares soared, with the Dow Jones closing up 2.86% or 339 points to 12,208, while the S&P 500 gained 3.43% or 42 points, to finish at 1,284.

The S&P 500 has risen 13.4% this month and is on course to post its biggest monthly gain since October 1974, when it rose 16.3%.

Financials were the biggest winners with Morgan Stanley jumping 17% to $19.41, Citigroup up 9.7% to $34.17 and J.P. Morgan Chase up 8.3% to $37.02.

All 30 stocks in the Dow Jones index ended trading in positive territory.

Meanwhile the US dollar fell 2% against the euro to $1.419, its biggest one day drop since July 2010.

The fall came as hedge fund managers exited their long bets on the dollar and pumped the proceeds into risk assets.

Meanwhile, in Asia the Nikkei climbed 1.39% or 124 points to 9,050 overnight.

This morning in the UK shares were muted having soared yesterday by 3.1%.

At the opening bell the FTSE 100 rose 13 points to 5,726.