European equities rose on Monday as global investors monitored progress toward a U.S. Covid relief bill in the context of rising bond yields.
The pan-European Stoxx 600 rose 0.5% in early trading, with banks adding 1.9% to lead gains as almost all sectors and major stock markets advanced. Utilities fell 0.7%.
Futures contracts linked to major US indices left gains overnight to turn negative on Monday morning, as rising bond yields continued to fuel fears that central banks would try to tighten policy before planned. The 10-year U.S. Treasury benchmark yield was above 1.59% early Monday.
The first higher move in futures came after the Senate passed a $ 1.9 trillion economic relief and stimulus law on Saturday, paving the way for unemployment benefit extensions, another round of stimulus controls and aid to state and local governments.
The Democrat-controlled House will pass the bill later this week. President Joe Biden is expected to sign it before unemployment benefits programs expire on March 14th.
In terms of individual stock price movement, Swiss heating and ventilation manufacturer Belimo rose more than 8% after a strong profit report.
Stocks that benefited from closing measures and work at home fell to the bottom of the stack on Monday, with TeamViewer and Hellofresh falling about 5%.
– Jesse Pound and Saheli Roy Choudhury of CNBC contributed to this market report.
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