World stock markets experienced more volatile trading today, with equities in Europe swinging between gains and losses after solid advances across Asia.
Asian stock markets closed with gains as investors bet on central bank stimulus measures to support markets after the bloodbath at the start of the year.
"It's been a volatile start to the week in financial markets and that doesn't look like abating in the final week of the month, as the Federal Reserve and Bank of Japan announce their latest monetary policy decisions, we get a number of key economic releases and corporate earnings season gets into full swing," said Craig Erlam, senior market analyst at Oanda trading group.
After global equities enjoyed sharp gains Friday, Asian trading floors began the new week with more solid advances, led by Hong Kong, Tokyo and Sydney.
There will be close scrutiny this week of the Bank of Japan after a recent report said policymakers were considering ramping up its already vast stimulus programme to avert a deflation threat that has been exacerbated by plunging oil prices.
That came a day after the head of the European Central Bank, Mario Draghi, said he would consider further easing its own monetary policy.
There is also increasing speculation that the Federal Reserve will delay another interest rate rise for now, having increased the cost of borrowing in December for the first time in a decade.
The outcome of the Bank of Japan's monetary policy meeting on Friday "could be the main event this week... As the central bank may be about to announce another round of monetary stimulus", added Erlam.
"The Japanese economy has been stalling for some time and inflation has been non-existent. Add to this the recent appreciation of the yen on the back of safe haven flows and the BoJ may have little choice but to ease further."
Meanwhile, data revealed that the outlook for the German economy clouded over significantly in January as business confidence fell to its lowest level in 11 months.
The Ifo institute's closely-watched business climate index fell by a steeper-than-expected 1.3 points to 107.3 points in January, the lowest level since February 2015.
The Ifo survey "has brought the strongest signal yet that the recent global economic concerns and associated final market gyrations have started to hit the eurozone's biggest economy", said Capital Economics economist Jonathan Loynes.
