Volkswacht Bodensee - US, European stocks forge higher, extending rally

This week's results from US big-box chains Target, Lowe's and TJX will offer additional clues about the state of the world's largest economy following reassuring retail sales data last week.

"Today seems to be an extension of the positive trend" from last week, said Art Hogan, chief market strategist at B. Riley Wealth, who noted a chance that low trading volumes amid the "dog days" of summer holidays could lead to outsized market moves.

Major US indices forged higher, with the S&P 500 winning one percent.

Positive data last week eased concerns about the health of the US economy after markets were hammered this month due to recession fears and a Japanese interest-rate hike.

Traders are now turning their attention to the annual symposium of US central bank chiefs this week in Jackson Hole, Wyoming.

The highlight will be Friday's speech by Federal Reserve chairman Jerome Powell, with investors hoping that he will flag an interest rate cut for the Fed's next policy meeting in September.

This week's calendar also includes the Democratic Party's convention in Chicago, with Vice President Kamala Harris slated to deliver a headline speech Thursday.

- Gold shines -

Bets on Fed rate cuts weighed on the dollar, with the yen among big gainers as traders assess the chances of another Bank of Japan hike at its next meeting.

The currency rose sharply Monday against both the dollar and the euro.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said the "big players are increasing bets that the Bank of Japan will continue hiking the rates despite the sharp market reaction."

Gold was propelled to a new all-time high on Monday, fueled by expectations for Fed cuts that will make the precious metal more attractive to investors.

The precious metal had climbed to unprecedented heights on Friday, breaking above the $2,500 barrier for the first time.

Oil prices were down again, after last week's losses, on the back of demand worries connected to Chinese economic weakness. Analysts also cited improved odds of a Gaza truce deal following the latest efforts of US Secretary of State Antony Blinken.

Blinken, following a meeting with Israeli Prime Minister Benjamin Netanyahu, said Israel has accepted a US "bridging proposal" for a Gaza truce deal, and pressed Hamas to do the same, having earlier said the talks may be the "last opportunity" for a ceasefire.

Hamas had earlier called on mediators to implement a framework outlined in late May by US President Joe Biden, rather than hold more negotiations.

- Key figures around 2040 GMT -

New York - Dow: UP 0.6 percent at 40,896.53 (close)

New York - S&P 500: UP 1.0 percent at 5,608.25 (close)

New York - Nasdaq Composite: UP 1.4 percent at 17,876.77 (close)

London - FTSE 100: UP 0.6 percent at 8,356.94 (close)

Paris - CAC 40: UP 0.7 percent at 7,502.01 (close)

Frankfurt - DAX: UP 0.5 percent at 18,421.69 (close)

EURO STOXX 50: UP 0.6 percent at 4,871.41 (close)

Tokyo - Nikkei 225: DOWN 1.8 percent at 37,388.62 (close)

Hong Kong - Hang Seng Index: UP 0.8 percent at 17,569.57 (close)

Shanghai - Composite: UP 0.5 percent at 2,893.67 (close)

Euro/dollar: UP at $1.1086 from $1.1027 on Friday

Pound/dollar: UP at $1.2989 from $1.2944

Dollar/yen: DOWN at 146.61 yen from 147.63 yen

Euro/pound: UP at 85.33 pence from at 85.18 pence

West Texas Intermediate: DOWN 3.0 percent at $74.37 per barrel

Brent North Sea Crude: DOWN 2.5 percent at $77.66 per barrel

A.Ruegg--VB