European markets rose and Wall Street was poised for a higher open Monday as hopes the Federal Reserve might take action to keep the United States from slipping back into recession offset fears of a global slowdown.
Brent crude fell to near $106 a barrel as Libyan rebels captured most of Tripoli, bolstering hopes that oil exports from the OPEC country could resume soon.
Investors in Europe and the United States appeared to recover from a spout of panic selling late last week, when they dumped shares and bought up save-haven assets like gold and the Swiss franc amid concerns about the health of the American and global economies.
However, analysts warned that markets would likely stay volatile in the coming weeks as worries remain about levels of bank funding without a lasting solution for Europe’s debt troubles.
In London, the FTSE 100 jumped 1.1 percent while the DAX in Frankfurt inched up 0.4 percent. The CAC 40 in Paris gained 1.5 percent.
Wall Street was also set to open higher.
The improved mood came following a jittery day of trading in Asia, where most markets closed in the red.
Throughout the week, investors will be looking with anticipation to a speech Friday by the Federal Reserve chairman Ben S. Bernanke at a retreat in Wyoming.
The Fed pledged earlier this month to keep interest rates super-low through mid-2013. Investors wonder whether Bernanke will announce, or at least preview, further steps to help the economy including a third round of bond purchases known as quantitative easing.
