Futures on major U.S. indices extended earlier gains on Wednesday after ADP reported that private-sector employment recorded the largest gain in three years in November.

Futures on the S&P 500 are up 1.28 percent, futures on the Dow Jones Industrial Average are up 1.20 percent and Nasdaq100 futures are up 1.29 percent.

US nonfarm private employment reported the largest gain in three years in November. On seasonally adjusted basis, nonfarm payrolls rose 93,000 in November from the upwardly revised increase of 82,000 in October, while economists estimated an increase by 65,000.

U.S. nonfarm productivity rose at a 2.3 percent annual rate in the third quarter, revised up from 1.9 percent estimated in the previous month.

Earlier this morning, U.S. futures and global stock markets gained, following better-than-expected manufacturing reports from China and Europe.

Chinese manufacturing activity expanded at the fastest pace in seven months in November signaling higher inflationary pressures in the near term in the world's second biggest economy.

Manufacturing in the eurozone expanded in November at its fastest pace in four months, boosted by strong activity in France and Germany, while manufacturing production in the U.K. touched a 16-year high.

After the opening bell, ISM manufacturing index for the month of November will be released and is expected to show a slight deterioration in activity. Economists are forecasting that the index will be 56.40 against 56.90 in the previous month.

On Tuesday, US stocks dropped again over fears of spreading euro zone debt crisis, although equities seemed to stabilize somewhat on mid-afternoon reports that Republican politicians agreed to compromise with President Obama on extending the George W. Bush-era tax cuts.

The euro advanced 1.08 percent to 1.3123 against the dollar and the yen declined 0.50 percent against the greenback.

Crude oil futures gained 1.59 percent to $85.45/barrel ahead of inventory data and gold futures advanced 0.40 percent.

European stock markets are currently trading higher with FTSE 100 up by 93.30 points, DAX30 up by 138.99 points and CAC 40 up by 43.77 points.