Wall Street stocks joined a global rally of investors capturing stocks in dilapidated stocks as a choppy month nears its end.
The S&P 500 and Nasdaq Composite rose by about 1.5 percent each in early trading in New York. The powerful gains echo are rising in Europe. The entire Stoxx 600 region collected 2.1 percent, while London's FTSE 100 climbed 1.8 percent and the German Dax jumped 3 percent.
Economy led in Europe following a sell-off last week that pushed the Stoxx banking index to its lowest level since at least the late 1990s. Lenders including Deutsche Bank, Commerzbank and BNP Paribas increased by at least 3 percent on Monday. Other sectors that had been under pressure, such as travel and leisure companies, also went up in Monday's broad meeting.
Market sentiment was boosted by data showing that profits among China's industrial companies jumped 1
Diageo, the world's largest producer of spirits, also set a confident tone in the US economy on Monday. They said that the business there had exceeded expectations, reflecting "resilient consumer demand" and more confidence among some retailers.
Monday's increase comes at the end of an uneven month for global markets. The S&P 500 has fallen almost 6 percent since the end of August, while the Stoxx 600 has fallen about 1 percent.
Sebastien Galy, macro strategist at Nordea, said that investors were in "buy on dip" mode and that the markets had not "bottomed out" yet. He said the gain on Monday may have been flattered by fund managers buying stocks to balance their portfolios at the end of the month.
Fears that the markets could turn the tide in the fourth quarter – with potential coronavirus floods and a troubled US election – could "become a self-fulfilling prophecy", said Armin Peter, head of UBS 'debt capital markets.
Nevertheless, other investors considered a more optimistic view. Shamik Dhar, chief economist at BNY Mellon Investment Management, said he expected a return to the pre-pandemic level of economic activity around the middle of next year. It should be possible if governments could avoid returning to complete deadlocks and keep most of the economies going, he said.
US politics will probably be in the spotlight this week, with President Donald Trump's first election debate with Joe Biden, his Democratic rival for president, scheduled for Tuesday.
In currencies, the pound jumped more than 1 percent against the dollar and the euro to just under 1.29 dollars and 1.106 euros, respectively. Analysts said they were closely monitoring the development of Brexit talks and any potential new coronavirus restrictions to curb an increase in the virus.
Shares in the Asia-Pacific region had a positive start to the week, with Hong Kong's Hang Seng up 1 percent, Japan's Topix 1.7 percent higher and China's CSI 300 up 0.3 percent, in an expansion of the technology rally that strengthened Wall Street. Friday.