Global stock markets rose on Monday, kicking off a packed week that includes Federal Reserve and Opec meetings, and big US corporate earnings. Following a mixed performance in Asia, European stocks rose in afternoon trade. The major stock indexes on Wall Street opened higher, with the Dow up 0.2 %. The dollar was mixed after the Fed's rate announcement on Wednesday. Oil prices dropped on persistent concerns about coronavirus-affected demand, days before a production meeting of Opec oil producers and allies.

Investors were worried by an increase in Covid-19 outbreaks in India, but sentiment has been comforted by vaccine campaigns in the United States and the United Kingdom, and the massive amount of liquidity flowing through the global economy.

“Vaccinations in the US and the UK are optimistic; an increase in infections in India is a negative, but investors are looking beyond the bad with enough monetary and fiscal support,” Wilson said. The Federal Reserve's two-day workshop, which concludes on Wednesday, arrives before the US releases its new economic development figures later this week. Investors are looking forward to this week's Wall Street earnings from companies like Tesla, Facebook, and Apple.

“Thanks to government stimulus and the rapid speed of Covid vaccines, the US economy is in a much better shape,” said ThinkMarkets analyst Fawad Razaqzada.

“So far, the strength of US data has not stopped the Fed from leaving the monetary easing valves open. “However, if the data progress continues, it'll just be a matter of time before the Fed tapers its emergency fiscal stimulus.” Wall Street rose on Friday as good readings for US and European manufacturing and services demand outweighed concerns about President Joe Biden's proposal to almost double the capital gains tax.

Biden's $2.25 trillion development package could take longer than expected to pass Congress after a member of his own Democratic Party objected to its scale and supported a shrinking proposal suggested by Republicans.

According to JJ Kinahan of TD Ameritrade, “this week is busy on a trio of fronts-earnings, economic results, and monetary policy.”

Several well-known companies, including Tesla, Apple, Microsoft, Amazon, Alphabet, the parent company of Google, Boeing, Caterpillar, McDonald's, Mastercard, Chevron, and ExxonMobil. Roughly one-third of the S&P 500; P 500 is announcing earnings this week. In addition to the Fed's next policy meeting, investors may receive an early calculation of the first-quarter GDP this week, and US President Joe Biden will deliver his first speech to Congress and may announce another large spending initiative.

Monday started on a high note for Asia, but some markets tumbled, with Tokyo, Seoul, Singapore, Taipei, Manila, and Bangkok all up but Hong Kong, Shanghai, Sydney, and Jakarta dropping. Still, trading floors are on alert due to rising virus outbreaks across the world, with India witnessing more than 300,000 cases reported in five days in a surge that has overloaded hospitals and resulted in extreme oxygen and drug shortages. Mumbai stocks gained more than 1% on Monday.

The Canadian dollar rose to its top-level in nearly six weeks against the US dollar on Monday, as investors assessed the likelihood that the US Federal Reserve would retain its subdued posture at its policy meeting this week. Most observers anticipate that Fed Chairman Jerome Powell would say on Wednesday that speak of eliminating quantitative easing is premature, which could place downward pressure on Treasury yields and the US dollar. In comparison, the Bank of Canada indicated last week that it could begin growing interest rates next year while slowing the speed of bond buying.

Canadian investors are avoiding interest-rate responsive securities, anticipating inflation security, and gambling on a steeper yield curve as the Bank of Canada joins the ranks of global central banks in adopting a tougher stance.

The Canadian dollar was moving 0.3 % higher against the US dollar, or 80.39 US cents, after reaching its highest intraday point since March 18 at 1.2432. Speculators increased their bullish bids on the Canadian dollar to the highest level in seven weeks, according to data released by the US Commodity Futures Trading Commission on Friday. Gross long positions had risen to 13,246 contracts as of April 20 from 2,406 the previous week.

Oil, one of Canada's main exports, dropped on concerns that the COVID-19 cases in India would reduce fuel demand in the world's third-largest oil importer. Crude oil prices in the United States were down 1.9 % at $60.95 a gallon. Government bond yields in Canada increased around the curve. The 10-year yield increased by about one basis point to 1.526 %. Canadian retail sales figures for February are due on Wednesday, whereas GDP figures for the same month are due on Friday.