On Monday, after warnings from the managing director of the International Monetary Fund that a third of the global economy would fall into recession in 2023, global stocks rose several inches, European bond yields fell and the dollar remained stable.
The broadest MSCI index of Asia-Pacific stocks outside Japan rose 0.04%, just short of the world equity index, which rose 0.18%.
The pan-European STOXX 600 index rose 0.8% from the 12% it lost in 2022 due to aggressive monetary tightening by central banks.
Inflation data in Europe, minutes of the December U.S. Federal Reserve meeting and U.S. labor market data are among the major news to watch out for.
Markets in the U.K., Hong Kong, Ireland, Japan, Singapore, Canada and the U.S. were closed.
Rising stock prices in Europe may be driven by survey results released Monday that indicate a rebound in optimism among eurozone business executives.
S&P Global's final Purchasing Managers' Index (PMI) for the manufacturing sector jumped to 47.8 in December from 47.1 in November, matching the preliminary reading but below the 50 mark separating growth from contraction.
Europe is taking the latest round of PMIs rather well, as the final data help confirm the view that the worst for EU manufacturers may be over, especially when energy prices fall to last February's levels.
Dollar:
Elsewhere, the dollar rose nearly 0.2% against a basket of major currencies, while the pound and the euro fell 0.4% and 0.2%, respectively.
The dollar index tried to move higher, but it is still losing much of its strength gained last year.
U.S. Treasuries will resume trading Tuesday after a holiday on Monday.
German government bond yields fell Monday from their highest levels in more than a decade amid more aggressive signals from the European Central Bank.
ECB President Christine Lagarde said eurozone wages are rising faster than previously thought and the central bank must not let that exacerbate already high inflation.
Germany's 10-year bond yield fell 12 basis points to 2.44%, after hitting its highest level since 2011 at 2.57% on Friday.
According to and IMF Executive Director Kristalina Georgieva's Sunday statement, 2023 will be a tougher year than the previous one because three major economies -- the U.S., the EU and China -- are slowing at the same time.
