Global stocks spike on relief over North Korea restraint

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South Korea's Kospi Composite gained 1 per cent while Japan's Topix climbed 1.4 per cent, on course for its best day since early June.

About 6 billion shares changed hands in US exchanges, above the 5.8 billion daily average over the last 20 sessions.

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. In Germany, the Dax rose 1.4 per cent, while France's Cac 40 closed up 1.2 per cent.

"The fact that we didn't get much on that front is helping the dollar recover a little bit".

Tensions between the USA and North Korea have been on investors' minds recently, and on Monday global markets advanced as the situation did not get any worse.

While that's the seventh straight day of gains for the loonie, Fehr said the dollar appears to be settling down after surging more than three cents USA over the past six sessions.

The Dow Jones Industrials raced ahead 259.58 points, or 1.2%, to 22,057.37, with Goldman Sachs, Apple, 3M and insurer Travelers Cos. contributing the most to the gains.

Clothing retail firm H&M advanced 2.92 percent in Stockholm after a rating upgrade from Credit Suisse.

Adding to an uptick in risk appetite was relief that North Korea did not test-fire missiles or conduct nuclear tests over the weekend as some had feared. Unfortunately for the US Dollar, nothing significant has changed over the past 10 days: the can was kicked down the road on the US debt limit; the European Central Bank still hasn't admonished the Euro's rise; and ultimately, US Treasury yields have continued to press lower.

In a typical risk-on move, the United States dollar strengthened by 1.03% verus the yen to 108.94 with the December gold contract on COMEX off by 0.86% at $1,339.50/oz. Home Depot dropped $1.29 to $158.37 and Lowe's declined $1.06, or 1.3 percent, to $77.50.

ENERGY: Oil futures rebounded, with benchmark USA crude rising 37 cents to $47.85 a barrel in electronic trading on the New York Mercantile Exchange. Copper added 2 cents to $3.07 a pound.

Advancing issues outnumbered declining ones on the NYSE by a 4.02-to-1 ratio; on Nasdaq, a 2.45-to-1 ratio favored advancers.

In the same sector, however, Denmark's Lundbeck slumped 13.8 percent, the leading faller in Europe, after the resignation of CEO Kåre Schultz.

Pharma heavyweight AstraZeneca rose 2.1 per cent after two of its drugs tackling lung cancer delivered impressive clinical results on Saturday.

However, it bounced back on Monday, surging above 108 yen from Friday's 10-month lows.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.28 percent to 834.50 tonnes on Friday from 836.87 tonnes on Thursday.