U.S. stocks and the euro rose after a Financial Times report said European leaders will discuss boosting the firepower of the euro zone rescue fund at this week's summit.

The report, citing senior European officials, said strengthening the bailout fund could include running two separate rescue facilities. According to the officials, European leaders will consider allowing the euro zone's existing 440-billion euro (378-billion-pound) bail-out fund to continue running even when a new 500-billion facility takes effect in mid-2012.

Reuters reported earlier that European Council President Herman Van Rompuy discussed the possibility of boosting the size of Europe's permanent bailout fund, the European Stability Mechanism.

European leaders will convene a summit on Thursday to discuss tighter oversight of euro zone fiscal policy and finding ways to resolve the euro zone's debt crisis.

The euro hit global session highs against the dollar at $1.34283 following the FT report, while U.S. stocks extended gains.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)