US. stocks were little changed, with the S&P 500 ending the day virtually flat amid the slowest trading this year.
In currency news the dollar rose to its highest level in more than three months as the prospect of yields on benchmark U.S. Treasuries reaching 3% reignited demand. The greenback strengthened against major peers as the yield on the U.S. 10-year note hit 2.99 % for the first time since 2014 before paring the increase.
European equities advanced 0.5% with Insurance and Banking stocks leading the gains.
In other news, economic momentum in the euro area kept a steady pace in April after softening earlier in the year, in a sign that growth in the region is set to continue albeit at a slower pace. A composite Purchasing Managers’ Index remained unchanged at 55.2. Economists predicted a decline to 54.8. While activity in services picked up, growth in manufacturing slowed to the weakest in more than a year.
Economic news is a key focus this week as the European Central Bank has a rate decision on Thursday. Investors will watch for any sign that officials are preparing a shift in stimulus plans for their June meeting.
Equities in Japan rose reaching at the highest in almost two months following declines in the yen.
Chinese shares advanced on signs the government is moving to ease some policies that it had sought to rein in a credit binge in some parts of the economy.