European stocks pared gains into the opening of U.S markets Monday as equities extended their global rally following last week's Presidential election victory for Donald Trump.

Britain's FTSE 100 was trading around 25 points higher than Friday's close by mid-day in London, after rising as much as 80 points, or 1.2%, in early trading led by basic materials and financial stocks. In Germany, the DAX performance index kicked-off the week with a 0.5% gain, building on last week's rally, with both Deutsche Bank (DB) and Commerbank  (CRZBY) among the top advancers. 

It was a similar story for France's CAC-40, which added 0.44% on the back of significant gains for BNP Paribas (BNPQY) , Credit Agricole (CRARY) and Societe General (SCGLY) , the country's four biggest lenders. 

Markets expectations of a Trump administration remain the driving force behind financial markets this week, particularly in foreign exchange, where the dollar surged to a nine-month high of 99.66 against a basket of global currencies.  The dollar strength as also pushed gold to a five-month low of $1219 per ounce Monday.

Against the greenback's strength, however, the pound, fresh off its best two-week stretch of gains in eight years, gave back some of that bullish sentiment to trade 1.05% lower against the dollar at 1.2484. The European single currency also slipped to a nine-month low of 1.0744.

Amid promises of a $9.5 trillion stimulus for the world's biggest economy, led by tax cuts and sharply increased borrowing, US Treasury yields resumed their post election rise in overnight Asia trading, with benchmark 30-year rates rising above 3% for the first time since January. Ten-year yields rose 9 basis points to a 2016 high of 2.24% as investors continued to re-set assumptions for inflation in the wake of Trump's victory in last week's U.S. elections. 

Market expectations of a rate hike from the U.S. Federal Reserve rose to 84% overnight, a significant increase from the 45% chance that was priced in as votes were being counted last Tuesday evening. 

European government bond yields continued to rise Monday as investors adjust assumptions for inflation and re-price credit risk in a long-dormant market following last week's victory for President-elect Donald Trump.

Ten-year German government bond yields, which move inversely to prices, touched a nine-month high of 0.38% Monday, extending a two-week stretch of declines that has effectively doubled the benchmark European borrowing rate. U.K. government bonds, known as Gilts, also touched multi-month highs, with 10-year yields trading at a post-Brexit vote high of 1.36%.

Global crude prices rose marginally in European trading, but continued to be weighed down by last week's OPEC production figures, which indicated output reached a record 33.64 million barrels last month, as the primary driver. Cartel members will meet in Vienna later this month with the aim of agreeing a freeze on output at current levels.

Brent crude prices fell around 0.6% to $44.84 while Nymex light sweet crude fell 1% to trade at $43.44 per barrel. 

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