Equities are once again being pulled higher by hopes that European officials are on a path to resolving the eurozone debt crisis.

The plan involves expanding bail-out funds to €940 billion - €440 billion from the European Financial Stability Fund and €500 billion from the European Stability Mechanism. 

According to BMO Capital Markets, the EFSF would be guaranteed by governments and the ESM would have "paid-in" capital. 

"So the possibility that some sort of plan is being lined up is giving markets hope that something concrete may actually come of this weekend's meetings but how to execute said plan will be extremely complicated and an instant solution cannot be expected," BMO said.

The proposal has European equities in rally mode: the FTSE 100 is up 1.37% and the CAC-40 is trading 1.58% higher.

In the U.S., cash is flowing from fixed income to riskier assets.

The 10-year and 30-year Treasury yields are two and three basis points higher at 2.20% and 3.24%, respectively, while the two-year yield is steady at 0.27%.

S&P 500 futures are up 10.8 points at 1,220.70 and Dow futures are up 93 points at 11,565.

Among commodities, light crude oil moved up 0.95% overnight to $86.91 per barrel, while gold prices jumped 1.16% to $1,632 per ounce.

Key Events Today:

1:00 - Narayana Kocherlakota, president of the Minneapolis Fed, speaks to the Harvard Club of Minnesota in Minneapolis.