World Markets: European stocks closed sharply higher. Britain's FTSE 100 rose 1.3%, the DAX in Germany increased 1% and France's CAC 40 added 1.4%.

Asian markets closed higher. The Shanghai Composite had the strongest gains, up 1.7%, while the Hang Seng in Hong Kong jumped 0.8%, and Japan's Nikkei rose 0.2%.

China's government reported earlier in the day that its official purchasing manager's index jumped to 50.2 in October, from 49.8 the previous month. Any reading above 50 indicates that factory conditions are improving in the manufacturing sector.

Currencies and commodities: The dollar rose versus the euro, the British pound and the Japanese yen.

Oil for December delivery added 85 cents to settle at $87.09 a barrel.

Gold futures for December delivery fell $3.60 to settle at $1,715.50 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury edged lower, pushing the yield up to 1.72% from 1.69% late Wednesday.