U.S. stocks rallied to a five month high Tuesday, boosted by encouraging services sector data and hopes that global central banks will follow Japan's lead in stimulating economic growth. The Dow Jones Industrial Average recently was up 198 points, or 1.8%, to 10948, its highest level since May 3. Boeing fueled the Dow's gains, rising 3.8%, while Bank of America increased 3.3% and DuPont gained 3.2%. American Express was the only Dow component in the red as investors digested the company's decision to fight the Justice Department's civil antitrust suit. Shares fell 2.1%. The technology heavy Nasdaq Composite rose 2.3% to 2399. The Standard & Poor's 500 share index gained 2.1% to 1161 and powered above a key resistance level. All 10 of its sectors traded in positive territory, led by the materials, industrials and financial sectors. Investor optimism comes ahead of some key data later this week. Dow component Alcoa unofficially kicks off earnings season after the close Thursday, prior to the closely watched monthly jobs report due Friday. The U.S. services sector expanded at a better than expected pace in September, according to the Institute for Supply Management. The ISM report is comprised mainly of comments from service-sector companies that make up the bulk of the U.S. economy, but it also includes construction and public administration. Also boosting sentiment, the Bank of Japan unexpectedly announced it will buy more bonds and cut its key overnight call rate to a range of zero to 0.1%, with rates to remain this low until prices begin to stabilize from deflationary pressures.

European shares finished higher Tuesday, snapping a six-session losing streak as a surprise rate cut by the Bank of Japan fueled expectations that central banks will continue to do all they can to support growth. The Stoxx Europe 600 index rose 1.3% to 261.18. It had dropped around 2.4% over the previous six sessions. The gains came after the Bank of Japan lowered its policy interest rate and said it would take further easing measures, including a new temporary fund to buy various assets. A good start to Wall Street trading helped Europe extend gains. At the regional level, the French CAC 40 index scored the biggest gains, jumping 2.3% to 3,731.93, while the U.K.'s FTSE 100 index closed up 1.4% at 5,635.76 and the German DAX 30 index tacked on 1.3% to 6,215.83. Bank stocks gained throughout the session, with EFG Eurobank rising 5.6% in Athens, following reports from a credit conference in Warsaw that Moody's Investors Service sees the risk to Greece's sovereign rating forecast on the upside if the country continues to reform its finances. The rating agency also announced that Ireland's credit rating is on review for a possible downgrade due to the rising cost of recapitalizing the country's banks. Bank of Ireland rose 0.8%, but underperformed the rest of the sector.

Asian stock markets ended mixed Tuesday with Wall Street's pullback Monday weighing on some markets, though Japanese stocks rebounded after the Bank of Japan surprised with a rate cut and said it will expand its monetary easing program by purchasing more assets. The Nikkei Stock Average was the best performer among the region's major stock benchmarks. It ended 1.5% higher at 9,518.76, getting a boost in afternoon trading after the Bank of Japan cut its policy interest rate to a range between zero and 0.1% from 0.1%. The central bank also announced a 35 trillion yen monetary easing program. Shares of banks and some consumer finance companies climbed after the BOJ moves, with exporters also edging modestly higher as the yen briefly fell after the central bank decision. Mizuho Financial Group jumped 3.6% and Mitsubishi UFJ Financial Group gained 2.4%. Among exporters, Elpida Memory climbed 3.2% and Canon rebounded from early declines to end up 0.4%. Elsewhere, Hong Kong's Hang Seng Index inched up 0.1%, Taiwan's Taiex fell 0.6%, and South Korea's Kospi ended flat.

Tin rallied to a record high and copper to a 26-month high Tuesday on the London Metal Exchange, boosted by a stronger euro and fund buying. Tin hit $26,010 a metric ton, besting its pre financial crisis high of $25,500/ton in May 2008. Copper rose to $8,229.25/ton, and closed 1.4% higher on the day. The bank predicted copper would rise to $11,000/ton in 12 months' time as it expects the market will experience "periods of extreme tightness" in 2011. The forecast was 37% above Goldman's previous one issued in September. Positive U.S. nonmanufacturing data and rallying U.S. equity markets also lifted sentiment. The Institute for Supply Management's nonmanufacturing purchasing managers index rose to 53.2 in September, above expectations of 52. Crude oil futures climbed to a five month high Tuesday, spurred by weakness in the dollar and strength in equities. Investors sprinted into dollar denominated physical assets, such as gold and oil, after Japan cut interest rates to near zero as part of a monetary easing program. The dollar dropped sharply against the yen and tumbled to its lowest level against the euro since February. Crude oil futures also gained support from a disruption in tanker traffic in the Houston Ship Channel and a port strike in France that delayed deliveries to refineries. Light, sweet crude oil for November delivery on the New York Mercantile Exchange settled $1.35 higher at $82.82 a barrel, the highest level since May 4. Gold futures settled above $1,340 for the first time as investors fled paper currencies in favor of the metal as a perceived store of value. The gains came amid growing expectations the Federal Reserve will embark on another round of monetary easing as other central banks soften their policies, leading some to forecast currency devaluation and longer term increases in consumer prices. Gold is often seen as holding its value more strongly than currencies or other assets during inflationary periods. The most actively traded gold contract, for December delivery, rose $23.50, or 1.8%, to settle at a record $1,340.30 a troy ounce on the Comex division of the New York Mercantile Exchange. It hit an intraday peak of $1,342.60, the highest ever price for a most active gold contract.