European stocks rebounded firmly Thursday, lifting U.S. equity futures higher, as bargain-hunting investors return to global equity markets on the back of stronger domestic economic data and cheaper valuations.

The region-wide Stoxx Europe 600 index, the broadest measure of share prices, was marked 0.75% higher by mid-day in Frankfurt as investors lifted stocks from two-month lows after a solid Asia session. Britain's FTSE 100 added 0.08% to Wednesday's close, the lowest in five weeks, with financials and industrials driving the session's modest rebound. Germany's DAX performance index was 0.6% to the upside, led by gains for industrial engineering giant ThyssenKrupp AG (TKAMY) and preferred shares in the world's second-biggest carmaker, Volkswagen AG (VLKAY) .

Dow Jones Mini futures are also bouncing higher and were quoted 74 points, or 0.32% to the good at the start of European trading, while S&P mini futures 8.75 points, or 0.34% higher, from their Wednesday close, which ended the fourth consecutive session of declines and marked the worst day for the broadest measure of U.S. stocks since Sept. 5.

Investors will get a chance to test the market's underlying strength today with quarterly earnings from retail giants Wal-Mart (WMT) and Best Buy Co. (BBY) after stronger-than-expected retail sales data and modestly faster inflation underpinned bullish sentiment on growth in the world's biggest economy yesterday.

Still, markets remain concerned about over-valued equities and the near-term prospects of U.S. tax reform as House Republicans continue to criticise a Senate version of reforms that would delay corporate reductions and possibly remove the "individual mandate" provision -- which essentially compels Americans to purchase health insurance -- from the Affordable Care Act.

That said, economic and market optimism bled into Asia trading, where the Nikkei 225 notched a solid rebound of 1.47% into the close of trading and the broadest measure of regional shares, the MSCI Asia ex-Japan index, rose 0.19% to again test the highest levels in a decade.

One of the region's biggest movers were shares in Tencent Holdings Ltd. (TCEHY)  , which hit a record high Thursday after China's internet gaming giant -- and significant Snap Inc. (SNAP) shareholder -- posted much stronger-than-expected third quarter earnings and pledge to stoke investment into its lucrative online content machine.

Tencent shares were marked 2.3% higher in Hong Kong trading to change hands at HK$391.80 after rising to a lifetime high of HK$398.60, valuing Asia's most expensive company at around $472 billion and extending its year-to-date gain past 107%.

Global oil prices slipped from their previous levels in overnight trading as the U.S. Energy Information Administration reported a bigger-than-expected 1.9 million barrel increase in domestic crude stocks yesterday.

Brent crude futures for January delivery, the global benchmark for prices, were seen 0.12% lower at $61.58 per barrel while West Texas Intermediate crude contracts for the same month added 0.1% to $55.37 per barrel.

More of What's Trending on TheStreet:

More from Markets

Dow Dives on Earnings Disappointments From Caterpillar, 3M

Dow Dives on Earnings Disappointments From Caterpillar, 3M

Verizon Beats Q3 Earnings Estimate, Postpaid Phone Additions Top Forecasts

Verizon Beats Q3 Earnings Estimate, Postpaid Phone Additions Top Forecasts

Stocks Tumble, Dow Futures Plunge as Growth Risks Catch Up to Global Markets

Stocks Tumble, Dow Futures Plunge as Growth Risks Catch Up to Global Markets

Caterpillar Tumbles as Macro Concerns Offset Earnings Beat

Caterpillar Tumbles as Macro Concerns Offset Earnings Beat

Caterpillar Revenue, U.S. Investors Pivot Overseas: Two Keys to Your Trading Day

Caterpillar Revenue, U.S. Investors Pivot Overseas: Two Keys to Your Trading Day