The US markets opened higher on Monday heading into the tail end of a strong earnings season and ahead of new inflation data, as European investors sent stocks higher and oil prices fell.
The November manufacturing survey from the New York Fed, as well as strong retail and industrial data from China, added to the extra encouragement.
Craig Erlam, senior market analyst at OANDA, said he's encouraged by the resilience that's been seen in the markets which are again factoring in higher inflation and earlier rate hikes.
Erlam said that they wondered what will be the catalyst for the rally to continue.
During a virtual summit aimed at defusing some tensions over Taiwan and other flashpoint issues, both sides have signalled little appetite for compromise, according to US President Joe Biden and China's Xi Jinping.
European and Asian equity markets enjoyed a lot of gains Monday after another healthy pre-weekend showing on Wall Street, though global inflation concerns last week of surging prices in the world's two biggest economies dampened the mood.
Charles Schwab analysts wrote that the recent market volatility and uncertainty surrounding the path of monetary policies have been exacerbated by the festering global supply chain challenges.
While optimism about the global economic recovery remains intact, the rise in prices at rates that have not been seen for decades has made traders increasingly worried that central banks will have to tighten monetary policy sooner and more aggressively than previously thought.
Consumer sentiment at a 10 year low indicated that the issue is being felt more in people's pockets, putting pressure on the Federal Reserve to step in.
As supply chain problems are resolved, officials are sticking to their belief that the inflation spike will be temporary and peter out.
The Japanese economy contracted more than predicted in the third quarter, which was why the stock market enjoyed a strong showing on Monday.
New York - Dow was up 0.1 percent to 36,150. 22 points are needed to reach 22 points.
The euro dollar was DOWN at $1.1438 from $1.1445 on Friday.
The euro pound is DOWN at 85.18 pence from 85.33 pence.
Brent crude for the North Sea: DOWN 1.5 percent at $80.92 per barrel.
West Texas Intermediate: DOWN 1.7 percent at $79.46 per barrel.