Volumes were low since China, Japan, and the UK were all closed for public holidays. The Euro STOXX index increased by 0.71 %, whereas the German DAX increased by 0.61 % and France's CAC 40 grew by 0.5 %.

Wall Street expectations were higher; indicating more growth after financial markets set another round of historic highs last week. The MSCI world equity index, which monitors stocks in 49 countries, was stable on the day and under historic highs as declines in Asia offset growth in Europe.

Indian stocks reversed early losses to end flat on Monday, with advances in consumer products and telecom shares offsetting declines in corporation Reliance Industries and Kotak Mahindra Bank, which reported earnings that fell short of expectations.

The NSE Nifty 50 index increased 0.02 % to 14,634.1, while the S&P BSE Sensex fell 0.13 % to 48,718.5. In early trading, the indices had each lost more than 1% as investors considered rising calls to slow economic growth to stem a spike in COVID-19 illnesses.

On Sunday, a leading business group instructed authorities to take the “strongest national steps” to save lives, while the Indian Express announced that country's COVID-19 working group had recommended the federal government enact a national lockdown.

Prime Minister Narendra Modi's governing Bharatiya Janata Party (BJP) losing a critical election in West Bengal on Sunday.

Bharti Airtel was the top contributor to the indexes in Mumbai trade, rising 4.1 % in its strongest session since February 1. The S&P BSE telecom index increased by 3.5 %. Hindustan Unilever (HUL), a consumer products conglomerate, rose 2.3 %.

The belief that the global economy will surge when countries emerge from lockdowns and customers and companies release some of their surplus reserves amassed over the past year, is fueling investors' appetite for extremely risky assets.

An uptick in forecast-beating corporate results in recent weeks has boosted investor confidence. German retail sales figures for March are much stronger than predicted, indicating that the U.S.-led economic recovery is now spreading internationally.

Recent market surveys have also shown a surge in optimism about the rebound, though some analysts believe firms are getting a bit ahead of themselves and are more affected by the progress and pace of COVID-19 vaccine deployments.

“The information has been absurdly strong in recent months – whereas the overall economy is doing well, manufacturing growth is not yet at the stratospheric speeds the statistics indicate,” said UBS economist Paul Donovan.

A hectic week of economic data in the US is anticipated to show definite intensity, especially for the ISM manufacturing report and April payroll data. As per forecasts, 978,000 jobs were generated within a month as households invested their stimulus money and the economy expanded further.

Analysts at NatWest Markets, predict that U.S. payrolls will increase by 1.25 million in April, with unemployment falling to 5.2 % from 6 % in March.

GERMAN YIELDS RISES: Such increases could fuel uncertainty about the Federal Reserve tapering its asset purchases, although Chair Jerome Powell has also shown every indication of remaining patient on strategy.

Powell is scheduled to talk later on Monday, and he will be joined by a slew of other Fed executives this week. On Friday, Dallas Fed President Robert Kaplan sparked a ripple by asking for the initiation of the tapering discussion.

Previous week, the 10-year Treasury yield increased by 6 basis points. On Monday, the 10-year yield increased by 1 basis point to 1.64 %.

German benchmark yields have risen to their highest possible level since March 2020, as indicators of a robust turnaround in the eurozone economy stimulate further selling of safe-haven government debt, while Italian yields have risen to their peak point since September. The 10-year German yield increased by more than 3 basis points to -0.162 %.

“Recovery is catching up, vaccines are speeding up, and reopening is getting closer,” said Arne Petimezas, an analyst at AFS Group in Amsterdam.

The increase in German yields increased previous week while German inflation rose well above European Central Bank's target and reports from the United States showed that economic development accelerated in the first quarter.

The dollar index was trading at 91.115, down 0.1 % on the day yet still off with a two-month low of 90.422. The dollar finished April with a 2% fall, weighed down by the dramatic growth of the US budget and trade balances. The euro gained 0.3 % to $1.2051, after falling from a nine-week high of $1.2149 on Friday.