Global stocks higher after Wall Street gain ahead of Fed meeting

Global stock markets rose Monday as investors looked ahead to this week's Federal Reserve meeting for hints of possible changes in ultra-low interest rates and other economic stimulus.

London and Frankfurt opened higher while Tokyo also gained. Markets in China and Hong Kong were closed for a holiday.

Trading has been muted as investors wait for Wednesday's Fed meeting for signs of whether U.S. central bankers are turning more hawkish following a rise in inflation. No policy changes are expected immediately, but any shift in language in Fed comments might fuel fears bond purchases and other stimulus will wind down.

Expectations are for the Fed to maintain its ultra-dovish policy stance and refrain from discussing any form of tapering just yet, said Mizuho Bank in a report.

In early trading, London's FTSE 100 rose 0.3 per cent to 7,156.76 and the DAX in Frankfurt added 0.5 per cent to 15,775.29. The CAC 40 in Paris gained 0.6 per cent to 6,640.68.

On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones Industrial Average were up 0.1 per cent.

On Friday, the S&P 500 turned in a third weekly gain after rising 0.2 per cent. The Dow Jones Industrial Average added less than 0.1 per cent while the Nasdaq gained 0.4 per cent.

In Asia, the Nikkei 225 in Tokyo gained 0.7 per cent to 29,161.80 while the Kospi in Seoul added less than 0.1 per cent to 3,248.36.

India's Sensex lost 0.3 per cent to 52,306.12. New Zealand and Bangkok gained while Singapore and Jakarta retreated.

Fed officials say higher inflation should be short-lived. That was supported by a report last week that showed a rise in consumer prices in May was due mostly to temporary factors.

In energy markets, U.S. benchmark crude rose 51 cents to USD 71.42 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 62 cents on Friday to USD 70.91. Brent crude, the price basis for international oils, advanced 62 cents to USD 73.31 per barrel in London. It added 17 cents per barrel the previous session to USD 72.69.

The dollar declined to 109.69 yen from Friday's 109.72. The euro advanced to USD 1.2111 from USD 1.2104.