European shares jump and bond markets recover

European shares jumped on Monday and bonds calmed following last week's spikes.

Yields in key debt markets dropped back as both Asian and European stocks picked up again.

Europe's STOXX 600 index was up around 1.7% in early deals.

While London's FTSE 100 and Germany's DAX both opened higher.

Optimism swirled on after the much-anticipated $1.9 trillion U.S. COVID-19 relief bill was passed in the House of Representatives on Saturday.

It will now move to the Senate.

Hopes of the U.S. fiscal stimulus also helped send oil prices higher.

OPEC and its allies will meet on Thursday, and could discuss allowing as much as 1.5 million barrels per day of crude back in the market.

Investors have become wary in recent weeks that, when economies re-open from lockdowns, a combination of massive government stimulus and pent-up consumer demand will cause inflation to accelerate.

They'll be watching data closely this week, including factory activity for February.

Numbers out Monday showed European manufacturers at their busiest in three years.

Also helping sentiment was news that deliveries of the newly approved Johnson & Johnson COVID-19 vaccine should start on Tuesday.

Video Transcript

- European shares jumped on Monday and bonds calmed following last week's spikes. Yields in key debt markets dropped back as both Asian and European stocks picked up, again. Europe STOXX 600 was up around 1.7% in early deals. While London's FTSE 100 and Germany's DAX both opened higher.

Optimism swirled on after the much anticipated $1.9 trillion US COVID-19 relief bill was passed in the House of Representatives on Saturday. It will now move onto the Senate. Hopes of the US fiscal stimulus also helped send oil prices higher. OPEC and its allies will meet on Thursday and could discuss allowing as much as 1.5 million barrels per day of crude back into the market.

Investors have become wary in recent weeks when economies reopen from lockdowns. A combination of massive government stimulus and pent up consumer demand could cause inflation to accelerate. They'll be watching data closely this week, including factory activity for February. Numbers out on Monday showed European manufacturers at their busiest in three years.

Also helping sentiment was news that deliveries of the newly approved Johnson & Johnson COVID-19 vaccine should start on Tuesday.