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.