PARIS — Evidence that the U.S. central bank will continue to support the world's largest economy and a new reform effort in China pushed global stocks higher Monday.
Stocks have been buoyant over the past few trading sessions, with some indexes notably in the U.S. striking all-time highs. On Monday, the Dow Jones industrial average hit 16,000 point for the first time and the S&P 500 crossed 1,800; both later dropped below those levels but the underlying mood on Wall Street remains positive.
The catalyst to the latest advance has been Janet Yellen, who is slated to become the next chairman of the U.S. Federal Reserve. She expressed strong support for the Fed's low interest-rate policies, which have been credited with helping the U.S. economy rebound and have contributed to the gains in stock markets.
"Financial markets are buoyed by Janet Yellen's comments at her confirmation last week, which re-iterated a dovish policy message from the Fed," said Neil MacKinnon of VTB Capital. "Equity markets, at a record high in the U.S., are also presumably sanguine after Yellen said that 'bubble' conditions are not present at the moment."
In afternoon trading in Europe, France's CAC-40 rose 0.5 percent to 4,314, while Germany's DAX was up 0.7 percent to 9,234. The FTSE 100 index of leading British shares was 0.4 percent higher at 6,723.
In the U.S., the Dow Jones industrial average was up 0.2 percent at 15,988, while the S&P dropped down 0.1 percent to 1,796.
Markets, particularly in Asia, have also been supported by China's announcements of more details to its economic and social reform program, including opening state industries to greater competition, loosening its one child policy, and abolishing its labor camps.
China's leadership has faced pressure to replace a worn out economic model after growth slowed to a two-decade low in the second quarter. The details were announced last Friday after Asian markets had closed so this was the first response local investors had to trade on the news.
"An easing of the one child policy and scope for extensive growth in the financial sector are the sort of factors that have helped drive equities across much of the region," analysts at Monex Capital Markets said in a note.
China's Shanghai Composite surged 2.9 percent to 2,197.22 and Hong Kong's Hang Seng jumped 2.7 percent to 23,660.06. South Korea's Kospi was up 0.3 percent to 2,010.81 but Tokyo's Nikkei 225 reversed early gains to close fractionally lower at 15,164.30.
Elsewhere, trading was fairly lackluster. Among currencies, the euro was up 0.3 percent at $1.3535.
In energy markets, benchmark crude for December delivery was down 3 cents at $93.81 in electronic trading on the New York Mercantile Exchange.
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Associated Press writer Eileen Ng in Kuala Lumpur, Malaysia, contributed to this report.
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