On Friday the MSCI world stock index snapped four weeks of losses to rally the most since November and US futures rose as Bank of America Corp. said it will be profitable this year and Japan and China pledged aid for the economy.

European stocks rose in early trade, gaining ground for a fourth day in a row, on easing fears over banks and after signs of stabilization in US consumer spending that fueled a sharp rise on Wall Street.

Banking and insurance stocks led the rally, after US lender Citigroup said the bank does not need any more emergency cash from the government and expects to stay private, while rival Bank of America said it was profitable in January and February, calming worries over the faith of the two stricken banks and the financial system in general.

Mining shares, which have shown resilience so far this year, were also surging on Friday, gaining ground along with metal prices on hopes over the outlook for the Chinese economy, fuelled by comments from Chinese Premier Wen Jiabao.

The FTSEurofirst 300 index of top European shares was up 1.8 per cent. Around Europe, UK’s FTSE 100 index was up 1.7 per cent, Germany’s DAX index up 1.4 per cent, and France’s CAC 40 up 1.9 per cent.

Japan’s stocks rose, giving the Nikkei 225 Stock Average its biggest gain this year, on optimism the government will buy shares and as a better-than-expected US retail sales report eased concern of a deepening global slowdown.

The Nikkei 225 Stock Average soared 5.2 per cent. The broader Topix index added 3.3 per cent. For the week, the Nikkei had a 5.5 per cent jump, the best since the period ended November, 28. The Topix advanced 0.4 per cent.

US stock market index pointed to a slightly higher open for Wall Street on Friday after Thursday’s strong rally and good news from big banks.

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