European stocks rise on recovery hopes

LONDON: European stock markets advanced Monday on hopes that vaccines and stimulus would help fuel a global economic recovery from the coronavirus crisis, dealers said.

Approaching the half-way stage, London and Paris each climbed 0.3 percent and Frankfurt was up 0.1 percent.

Milan added 0.7 percent despite the re-imposition of lockdown restrictions in most of Italy to curb a new virus outbreak.

The dollar largely firmed ahead of Wednesday's US Federal Reserve monetary policy meeting.

Brent oil topped $70 per barrel on positive industrial production and retail sales data in key crude consumer China, while the dollar rose versus the euro and yen.

"Investors continue to anticipate speedy economic recoveries as the powerful forces of accelerating vaccine rollouts and significant financial assistance combine," said Richard Hunter, head of markets at trading firm Interactive Investor.

Bitcoin slid under $56,000 after hitting a record $61,742 on Saturday on keen investor demand for the world's most popular cryptocurrency.

Asian stock markets closed mixed as early rallies ran out of steam.

Investors have been emboldened this year as Covid vaccine rollouts and the easing of most lockdowns have stoked recovery hopes.

Bets on a strong rebound this year increased last week as US President Joe Biden signed off on his vast $1.9-trillion stimulus plan, which includes big cash handouts for struggling Americans.

This week's Fed meeting comes as investors fret that US recovery will fan inflation and force an interest rate hike earlier than previously expected.

That is reflected in the spike in government debt yields, particularly benchmark 10-year Treasury notes -- a canary in the coal mine for coming price increases.

"The passage of the $1.9-trillion American rescue plan is set to release another boost to a US economy which was already showing some signs of a turnaround," added analyst Hunter.

"The current fear is that the package could actually overheat the economy, and the meeting of the Federal Reserve later in the week will need to allay that concern."

The US central bank's bank's ultra-loose monetary policies, including record-low interest rates, have been a key pillar of the surge in equities over the past year but fears of possible tightening moves have seen that wobble in recent weeks.

Key figures around 1145 GMT -

London - FTSE 100: UP 0.3 percent at 6,783.53 points

Frankfurt - DAX 30: UP 0.1 percent at 14,521.94

Paris - CAC 40: UP 0.3 percent at 6,064.02

Milan - FTSE MIB: UP 0.7 percent at 24,287.18

EURO STOXX 50: UP 0.3 percent at 3,845.42

Tokyo - Nikkei 225: UP 0.2 percent at 29,766.97 (close)

Hong Kong - Hang Seng: UP 0.3 percent at 28,833.76 (close)

Shanghai - Composite: DOWN 1.0 percent at 3,419.95 (close)

New York - Dow: UP 0.9 percent at 32,778.64 (close Friday)

Euro/dollar: DOWN at $1.1937 from $1.1953 at 2200 GMT

Pound/dollar: UP at $1.3928 from $1.3924

Euro/pound: DOWN at 85.67 pence from 85.84 pence

Dollar/yen: UP at 109.04 yen from 109.03 yen

Brent North Sea crude: UP 0.4 percent at $69.50 per barrel

West Texas Intermediate: UP 0.4 percent at $65.87 per barrel