LONDON: Eurozone stock markets rose Monday after Brussels lifted its economic growth outlook for the region as Wall Street set new record highs.
London gains were tempered by the stronger pound, according to analysts.
Benchmark indices in Frankfurt and Paris won around one percent on news of the forecast upgrades, while London edged up 0.3 percent.
Wall Street also came off to a strong start, reaching new record levels amid continued high hopes for American tax plans.
Traders welcomed President Donald Trump's promise of details on US tax reform which came alongside a softer tone over China and Japan.
Brussels raised its growth forecasts for the eurozone through to 2018 but warned that the European Union as a whole was navigating "choppy waters".
Global stock markets have been on a roll since late last week after the new US president finally broke his silence over fiscal policy, saying he would unveil a "phenomenal" tax plan within three weeks.
That was followed by his affirmation that he recognises Beijing's "One China" policy towards Taiwan and that he had a positive weekend meeting with Japanese Prime Minister Shinzo Abe.
The developments provided some much-needed relief for traders who had grown increasingly worried about Trump's outbursts against both countries' trade policies and his lack of detail on the domestic front.
"This is a big relief for investors given that Trump's previous stance had raised serious foreign policy concerns, not to mention the prospect of severely damaged trade ties with the region and increased protectionism," said Oanda analyst Craig Erlam.
Jasper Lawler, an analyst with LCG, said much of the optimism was focused on "the benefits of a Goldman Sachs-led Treasury Department" under Steven Mnuchin, Trump's pick for treasury secretary.
Such a team "could be a more 'internationalist' influence on Trump, potentially putting a lid the President's penchant for currency wars and trade tariffs", Lawler said in a note to investors.
Attention is also on Federal Reserve boss Janet Yellen's two-day testimony to Congress this week, which will be pored over for clues about the bank's plans for monetary policy.
Oil prices, meanwhile, fell Monday after a warning that increased US shale oil production is cancelling out part of OPEC output cuts' upward effect on prices.
Renewed drilling by US oil producers is keeping a ceiling on a global crude price recovery, cutting into the impact of deep reductions by other major producers, OPEC said in a report.
- Key figures around 1640 GMT -
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London - FTSE 100: UP 0.3 percent at 7,278.92 points (close)
Frankfurt - DAX 30: UP 0.9 percent at 11,774.43 (close)
Paris - CAC 40: UP 1.2 percent at 4,888.19 (close)
EURO STOXX 50: UP 1.1 percent at 3,305.23 (close)
New York - Dow: UP 0.6 percent at 20,398.45
Tokyo - Nikkei 225: UP 0.4 percent at 19,459.15 (close)
Hong Kong - Hang Seng: UP 0.6 percent at 23,710.98 (close)
Shanghai - Composite: UP 0.6 percent at 3,126.84 (close)
Euro/dollar: DOWN at $1.0600 from $1.0638
Pound/dollar: UP at $1.2498 from $1.2485
Dollar/yen: UP at 113.92 yen from 113.25 yen
Oil - Brent North Sea: DOWN $1.12 at $55.58 per barrel
Oil - West Texas Intermediate: DOWN $1.00 at $52.86
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