LONDON: Stock markets rallied on Monday on receding concerns over North Korea and Hurricane Irma, analysts said.
After a robust start in Asian trading, equities moved higher in Europe and Wall Street also opened to gains.
"Markets have started the week in a positive fashion, with risk assets firmly in the driving seat at the expense of the commonly perceived havens such as gold, treasuries (US government bonds), and the yen," said Joshua Mahony, market analyst at IG traders.
Asian stock markets pushed higher as traders breathed a sigh of relief that Pyongyang did not fire another missile on Saturday, choosing instead to mark its foundation day with a parade.
Killer Hurricane Irma meanwhile struck Florida with less force than feared.
The previous week saw a sell-off in risk assets sparked by Kim Jong-Un's nuclear test, in turn benefiting haven assets such as the yen and gold, which retreated Monday alongside a pick-up for the dollar.
"Stock markets are strong... as the geopolitical and environmental issues haven't turned out to be as bad as traders previously predicted," said David Madden, analyst at CMC Markets UK.
Both Paris and Frankfurt were both up 1.1 percent in afternoon trading, while London stocks trailed with a 0.2 percent gain.
Wall Street opened higher, with the Dow climbing 0.8 percent in the first minute of trading.
- 'Solidly higher' -
"US equities are moving solidly higher in early action, with geopolitical concerns fading as North Korea held off on conducting another missile test, while early reports are suggesting downgraded Hurricane Irma's economic impact may be lower than feared, bolstering insurance stocks," said analysts at Charles Schwab brokerage.
In foreign exchange, the European single currency was trading down at $1.1978 compared with $1.2030 late in New York on Friday.
The euro on Friday reached $1.2092, the highest level since January 2015 as traders bet on the European Central Bank winding in its huge stimulus programme.
The pound meanwhile steadied Monday awaiting British MPs first vote on a bill to end Britain's membership of the EU.
The focus was now also on the UN Security Council, where Washington is pushing for a vote Monday on tough fresh sanctions against Pyongyang, despite resistance from China and Russia.
The greenback had come in for a pounding in recent weeks on waning expectations for further Federal Reserve interest rate rises and doubts about US President Donald Trump's chances of pushing through his market-friendly economic policies.
However, it bounced back on Monday, surging above 108 yen from Friday's 10-month lows.
On oil markets, US prices fell further after taking a beating Friday caused by Hurricane Irma threatening crude supplies.
Key US oil contract West Texas Intermediate sank 3.3 percent Friday while European benchmark Brent North Sea crude slid 1.3 percent in value.
Irma, which has toppled cranes, swallowed streets and left millions without power, was starting to weaken on Monday while still pummelling parts of Florida on its destructive march north.
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