U.S. and European stock prices surged on Thursday following Italy’s successful bond auction and amid news of improvement in the U.S. housing and employment sectors.

At the New York Stock Exchange, the Dow Jones Industrial Average jumped one-point-one percent while the Nasdaq composite index rose nine-tenths of a percent.

Stock prices in Germany surged one-point-eight percent and one-point-three percent in France.

The prices soared after worries over the debt crisis in Europe were eased when Italy's auction of longer-term bonds worth some seven billion euros produced lower yields than those seen a month ago.

In the U.S., initial jobless claims registered during the past four weeks stood at the lowest rate since June 2008 and the number of Americans signing contracts to buy existing homes increased last month to the highest level in 19 months.