European and Asian stocks extended last week's rally on Monday and crude oil marched higher after US economic news and stronger-than-expected data from the eurozone spurred expectations for economic recovery. But an early rally in US stocks faded about midday in New York after Treasuries rose as investors swooped in to take advantage of sharp losses on Friday.
Oil rose to a 10-month high near $75 a barrel and other commodities also surged as optimism that major economies were pulling out of recession drove hopes of rebounding demand. Global stocks as measured by MSCI's all-country world index rose 1.2 percent and was on track for a fifth straight session of gains.
The yen fell while the US dollar slid against commodity currencies, such as the Australian and New Zealand dollars, as investors became more comfortable with riskier trades given the upbeat assessment of the world economy. European shares hit their highest closing level in nearly 10 months, boosted by banks and miners. Copper prices rose to their highest in more than a week, helped by strong investment demand and bets the economic crisis is petering out.
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