Global stocks goes high in broad rally

Global equity markets surged on Monday, lifted by talk of more stimulus from China and by a broad rally on Wall Street that overcame a plunge in Boeing shares after one of its newest jets crashed, while U.S. debt yields rose on improved risk appetite.

China's main bourses clawed back almost half the 4 per cent they lost on Friday as the country's central bank chief pledged billions of dollars of cuts to taxes and fees to shore up an economy growing at its slowest pace in almost 30 years. U.S. stocks followed strong gains in Europe with the benchmark S&P 500 and tech-heavy Nasdaq rising more than 1 per cent after Wall Street posted losses every day last week.

"This market, it comes in waves. Everybody who missed the rally in January and February is looking to buy the dip," said Dennis Dick, a proprietary trader who is head of market structure at Bright Trading LLC in Las Vegas. "It's buying the dip, it's back," Dick said.

The Dow rebounded after Boeing Co, the index's best performing component this year by far, pared steep losses after some airlines grounded the company's new 737 MAX 8 passenger jet following a second deadly crash of the airliner in five months. Boeing shares dropped 5.5 per cent, paring losses of about 13.5 per cent shortly after the open.

The Dow Jones Industrial Average rose 161.81 points, or 0.64 per cent, to 25,612.05. The S&P 500 gained 35.48 points, or 1.29 per cent, to 2,778.55 and the Nasdaq Composite added 136.71 points, or 1.85 per cent, to 7,544.85. The FTSEurofirst 300 index of leading regional shares closed up 0.76 per cent, while MSCI's gauge of stocks across the globe gained 1.1 per cent.

In China, the Shanghai Composite index rose 1.92 per cent and the blue-chip CSI300 gained 1.98 per cent. The dollar eased after mixed U.S. retail sales data and sterling jumped as investors braced for parliamentary votes on Prime Minister Theresa May's Brexit deal that could decide the terms on which Britain leaves the European Union.

May's failure to win last-minute concessions from the European bloc regarding the Irish border set the stage for another humiliating defeat in parliament. Sterling fell in early trade but later erased its losses to trade at $1.3159, up 1.11 per cent on the day.

The dollar index fell 0.13 per cent, with the euro up 0.04 per cent to $1.1243. The Japanese yen weakened 0.07 per cent versus the greenback at 111.21 per dollar. Norway's crown gained after strong inflation data raised interest rate hike expectations, with some strategists saying a March move by the Norges Bank was a done deal.

With market volatility low, investors have rushed to buy currencies where central banks are still raising rates or economic data has pointed to a brighter economic outlook. The benchmark 10-year U.S. Treasury note fell 5/32 in price to yield 2.6411 per cent.

Oil prices rose 1 per cent on Monday, lifted by comments from Saudi Energy Minister Khalid al-Falih that an end to OPEC-led supply cuts was unlikely before June. U.S. crude rose 72 cents to settle at $56.79 per barrel and Brent settled 84 cents higher at $66.58.

Gold fell, moving further off the key $1,300-per-ounce mark it briefly surpassed last week. U.S. gold futures settled 0.6 per cent lower at $1,291.10 an ounce.