European stocks are expected to open sharply higher on Wednesday, adding to the previous session's gains, after the Federal Reserve cut U.S. interest rates by a bigger-than-expected 50 basis points and stoked a rally in global equities.
U.S. stocks made their biggest gains in almost five years as the Fed's cut, the first in four years, raised hopes the economy could ride out a prolonged housing slump and turmoil in the credit market.
Financial bookmakers expect Britain's FTSE 100 Index to open as much as 1.3% higher, Germany's DAX is seen rising as much as 1.6% and France's CAC is set to jump as much as 2.0%.
Asian stocks surged, with MSCI's measure of Asia Pacific stocks excluding Japan up 3.7% at 499.9, its strongest level in nearly 8 weeks.
The Dow Jones Industrial Average jumped 2.5% to end at 13,739.4, the Standard & Poor's 500 Index surged 2.9% to 1,519.8 and the Nasdaq Composite Index rallied 2.7% to 2,651.7.
Markets will also eye oil prices as U.S. crude hit a record high of $82.38.