The MSCI world equity index gained 0.66%, to 706.20, FTSEurofirst 300 index gained 0.10%, to 1,715.51, the DJIA added 0.54%, to 34,393.98, the S&P 500 rose 0.99%, to 4,197.05, and the Nasdaq Composite by 1.41%, to 13,661.17

Global equity markets gained on Monday while the dollar traded near four-month lows against major currencies as investors eye upcoming US inflation readings for guidance on monetary policy.

Market participants were gearing up for US personal consumption data on Thursday and a potential tapering of asset purchases in the face of strong economic data.

The yield on the benchmark 10-year US Treasury note slipped to one-week lows, while gold edged up.

The market is taking a deep breath and is coming to terms with inflation, said Thomas Hayes, managing member at Great Hill Capital in New York.

The MSCI world equity index gained 0.66% to 706.20. Europe’s broad FTSEurofirst 300 index gained 0.10% to end at 1,715.51, with technology stocks helping the index hover near record highs.

On Wall Street, the Dow Jones Industrial Average added 0.54%, to 34,393.98, the S&P 500 rose 0.99%, to 4,197.05, and the Nasdaq Composite by 1.41%, to 13,661.17.

Overnight in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1% in slow trade. Japan’s Nikkei gained 0.2% and Chinese blue chips edged up 0.4%.

After the strong growth shown by surveys of the global services sectors on Friday, all eyes will be on US personal consumption and inflation figures this week.

A high core inflation reading could revive talk of an early tapering by the Federal Reserve.

The market was afraid that the Fed will get behind the curve with tapering but that doesn’t seem to be the case with commodity prices stabilizing, Hayes said.

The dollar index moved around the 90 mark, down 0.2% on the day in afternoon trading in New York, slightly above a four-month low of 89.646 on Friday.

The US 10-year Treasury yield dropped to 1.6046% from 1.632% late on Friday.

Oil prices added more than 3% on Monday as a demand boost fuelled by COVID-19 vaccination drives gave traders hope that the market can absorb any Iranian oil that would come on the market if sanctions are lifted.

Brent crude oil futures settled up $2.02, or 3%, at $68.46 a barrel, while July US West Texas Intermediate closed at $66.05 a barrel, up $2.47, or 3.9%.

Spot gold rose 0.11% at $1,882.3100 per ounce.