Stocks rose in US trade overnight, adding to their biggest gain since July, as a surprise jump in home sales and a better-than-expected jobless claims number tempered fears the economic recovery is weakening.

Last night’s stronger data, coupled with the good manufacturing figures seems to have eased concerns over the economy.

The NASDAQ was the top performer, rising 1.1%. The S&P 500 closely followed, up 0.9% while the Dow Jones Industrial Average could only manage gains of 0.5%.

Across Asia, regional markets are mostly higher following the stronger-than-expected US economic data overnight. Although, there is some caution ahead of tonight’s non-farm payroll numbers. As at 06:25, the Nikkei 225 is the top performer, up 0.5% while the Hang Seng and Kospi are both 0.1% firmer. The Shanghai Composite is bucking the broader trend, down 0.5%.

In Australia, the ASX 200 is hovering around the flat line, well off this morning’s high of 4558. Strength among industrial, material and consumer staples names are being offset by selling pressure among the big banks. It didn’t take long for the profit-taking to start in the early session.

The sustained run of buying on Wall Street in the last few minutes of trade yesterday is poised to help lift the major European indices again at the open, though there is wariness ahead of the non-farm data release.

There are a few other fundamentals on the agenda today - notably eurozone retail sales - but it's going to be all eyes on the non-farms. Although the overall backdrop may be one of downbeat economic data, we saw a marginally better-than-expected weekly jobless reading yesterday and anything with a bit of gloss on it could help again lock in confidence for equities. Another risk however, comes with the US Labor day holiday on Monday so any uncertainty could add to the temptation to take money off the table, ensuring traders don't get caught on the wrong side of any big move lower in Asia or Europe at the start of next week.

Wednesday's gains may well have put some froth back into the market so there are still some healthy short-term profits out there that can be booked. Ahead of the open we're calling the FTSE up 8 at 5379, the DAX up 13 at 6097 and the CAC up 7 at 3638.