Shares soared to record levels on Thursday, boosted by a better forecast from Europe's largest automaker Volkswagen and the trust in Germany's and the world's economic growth.

The STOXX 600 index of 600 European companies rose 0.2 % to 442.50 points, just shy of its all-time high of 443.61. The ACWI, the MSCI's broadest index of world stocks, was up 0.18 % at 700.98 points, falling around 10 points shy of its all-time high last month.

“I have already seen nothing in this week's price action to revise my opinion that overall the economic outlook in the short to medium term look fairly hopeful,” said Michael Hewson, chief market analyst at CMC Markets. “Even so, events in India could disrupt any global turnaround, especially if COVID variants move out of India.”

“Companies are making good money, and they are employing people. The key question is whether the recent recovery can be enduring in the short to medium term, but it seems to be,” Hewson added.

In economic reports, rising household demand for consumer goods drove a larger-than-expected 3% increase in German industrial orders in March, according to data released on Thursday, implying that factories in Europe's largest economy would favor a second-quarter rebound.

Among the notable earnings, Volkswagen shares gained 1% after Europe's largest carmaker lifted its 2021 expectations, indicating high demand for luxury vehicles.

The British chain lifted its full-year earnings outlook again for the second time in two months after reporting better first-quarter sales, sending its shares up 2%.

However, Curevac, a German company aiming for clearance for its COVID-19 vaccine, fell 10% after learning that US Vice President Joe Biden supports suspending intellectual property rights for COVID-19 vaccines.

Investors would search for further indications about the economy's rebound from European Central Bank Vice President Luis de Guindos and board member Isabel Schnabel, who will address on Thursday.

At 1100 GMT, the Bank of England releases the results of its most recent rate-setting committee meeting along with economic estimates. It plans to announce that Britain's economy will rebound even faster this year than originally expected, and it will begin to scale back its pandemic emergency assistance.

Investors were still looking forward to Scotland's poll, which can begin a clash with British Prime Minister Boris Johnson over a new independence vote.

Commodity markets benefited from the possibility of economic growth, with copper approaching 10-year highs.

Crude stockpiles in the US, the world's largest oil user, dropped rapidly than predicted, allowing oil prices to inch closer to their March highs. US crude futures were at $65.91 a barrel, up 0.4 % and only below the two-month high of $66.76 set on Wednesday.

In Asia, Japan's Nikkei 225 index rose 1.8 % following restarting after a five-day break.

The MSCI Asia Pacific ex-Japan stock index rose 0.19 %. Chinese stocks wobbled since resuming trading for the very first time over the last week. The CSI300 dropped 1.2 % with biotech companies leading the way.

The Dow set a new high overnight, rising 0.29 %, while the S&P 500 rose 0.07 %.

Nominal bond rates in the US were largely steady, with the 10-year U.S. Treasury yield remaining unchanged at 1.578 percent.

The dollar loomed near a two-week high record ahead of Friday's US monthly employment update, which is forecast to show a 978,000 rise in nonfarm payrolls last month.

The euro has been little altered at $1.2022 per dollar, whereas the yen traded at 109.32 per dollar.

Oil prices fell after early rises on Thursday, weighed down by increasing COVID-19 infections in India and everywhere and amid a much significantly bigger drop in US crude stockpiles.

Brent crude oil futures dropped 50 cents, or 0.7%, to $68.46 a barrel by 1236 GMT. West Texas Intermediate (WTI) crude futures in the US fell 58 cents or 0.9 % to $65.05.

On Wednesday, both indexes reached their highest levels since mid-March before withdrawing to close slightly modified following two days of gains.

The hope that India's deadliest second coronavirus wave was just about to top was thwarted on Thursday, when the virus transmitted from cities to villages throughout the world's second-most populated nation, posting record daily infections and deaths.

“Record figures of new infections in India have made national headlines, fueling concerns that demand may rebound quite sluggishly,” Commerzbank said.