Global stocks trade higher at the end of a volatile month

Global stocks trade higher at the end of a volatile month

WASHINGTON: World stocks climbed higher on Monday as investors digested new optimism from the U.S. Treasury's top economist that inflationary pressures should ease in 2022 due to weaker demand for goods, easing supply bottlenecks and a receding coronavirus pandemic.

Wall Street closed higher on Monday, coupled with an earlier rise in European shares, that helped stabilize investor sentiment after a series of volatile sessions.

In a statement released alongside the Treasury's quarterly borrowing estimates, Assistant Secretary for Economic Policy Ben Harris said he expects energy prices to stabilize in 2022, but geopolitical instability could push prices higher.

Still, investors said the backdrop for equities remains uncertain as other central banks tighten policy - the Bank of England is expected to hike rates again on Thursday - and another jolt higher in oil prices adds to inflationary worries.

The pan-European STOXX 600 index rose 0.72%.

Lunar New Year holidays made for thin trading conditions in Asia. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.11% higher.

On Wall Street, the Dow Jones Industrial Average .DJI rose 1.18%, while the S&P 500 gained 1.89%. The tech-heavy Nasdaq added 3.41%, but has borne the brunt of selling and is down 14% from a record peak last year.

The MSCI