U.S. stock prices rose sharply on Tuesday in the first trading session of 2012.

At the New York Stock Exchange, the Dow Jones Industrial Average and the Nasdaq composite index jumped around two percent and remained strong throughout the day.

Stock prices in Europe also posted the highest figure in five months after posting growth for the fourth consecutive trading period on Tuesday.

The positive figures came despite gloomy projections for the global economy this year.

The Dow rose 179 points after reports show that the manufacturing industry grew in December and that construction spending rose in November.

China’s purchasing managers index (PMI) surpassed 50 while India and Australia also saw better-than-expected PMI figures. A reading above 50 indicates that business conditions are improving.