U.S. and European stock markets climbed 1 percent or more on Tuesday, reversing five days of declines, as investors looked past China's equities sell-off and took buying cues from earnings and mergers news.

Prices of safe-haven government bonds eased, while the dollar rallied on growing expectations the Federal Reserve, in a policy statement due on Wednesday, could take a hawkish bias toward raising interest rates. Oil prices recovered from six-month lows and steadied on hopes U.S. crude stockpiles were shrinking.

Wall Street's Dow Jones industrial average finished ahead 189.68 points, or 1.09 percent, at 17,630.27, the S&P 500 rose 25.61 points, or 1.24 percent, to 2,093.25 and the Nasdaq Composite added 49.43 points, or 0.98 percent, finishing at 5,089.21.

The Visual Marketplace Index closed up as well, returning nearly where it was 48 hours ago. The index added .81 points to finish at 271.92.