Global stocks rose as investors bought into the idea that the Federal Reserve will ease up on its aggressive plan for interest rate hikes if necessary to avoid a recession.
Russia denied reports that it had slipped into default on its foreign debt after failing to make payments.
Last week's gains came after the US central bank said it would try to avoid a recession, but it would be difficult as it tries to curb inflation.
Chris Turner, global head of markets at ING, said in a note that Fed Chair Powell's admission of the risk of recession means that global monetary tightening may not be as sharp as expected. It's good news for the stock market.
Tech stocks continued to lead the rally Monday, with Nasdaq 100 futures up 0.55% after closing Friday with a weekly gain of over seven percent. The S&P 500 and the DOW Jones Industrial Average were expected to rise.
Analysts said Powell's comments helped to calm the markets. The Fed raised interest rates by 75 basis points at its last meeting, and investors worry that high inflation could lead to aggressive increases.
SEB's Filip Carlsson said that "gloomy growth indicators and falling oil prices caused markets to lower their expectations of aggressive increases by the Fed."
The price of oil fluctuated between small gains and losses as investors watched the G7 meeting in Germany where leaders are debating a price cap on Russian oil. The global benchmark crude was up 0.21% to $109.47 a barrel.
Reports say that Russia is in apparent default on its foreign debt for the first time in 100 years. The ruble was up after Moscow said the situation was a farce.
Strong sessions in Europe and Asia helped the MSCI World Index climb.
The pan- European STOXX 600 was up 0.71%. The London's FTSE 100 was up 0.68% while the Paris's CAC 40 was up 0.32%.
The Tokyo stock market closed higher. Hong Kong's Hang Seng gained 2.35%, and the Chinese stock market gained 0.88%.
Other major asset classes are doing well.
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