Stocks mostly rise as focus turns to US inflation data

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European and Asian stock markets mostly rose Monday as investors tried to move on from last week's upheaval fuelled by US recession worries, with focus shifting to the week's release of key data, notably American inflation.

After a painful collapse for equities a week ago, fuelled by a big miss on US jobs creation, equities managed to bounce back over the following days and ended Friday on a healthy note.

The gains were helped by a report showing fewer people than expected claimed US unemployment benefits, soothing fears that the world's top economy was contracting.

The recovery extended into the new week, while the dollar was mixed against main rivals.

"The stabilisation of sentiment is continuing, following the sell off a week ago, as concerns about an American recession ease off a little," noted Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"The latest inflation data in the US will be in sharp focus this week."

Traders are seeking clues over the number of likely US interest-rate cuts this year as inflation slows.

Expectations are that the bank will lower borrowing costs 25 basis points next month, and at least once more before January, thanks to a string of data suggesting price rises have been brought under control.

Elsewhere Monday, the yen weakened against the dollar following last week's gyrations.

Oil prices grew solidly on supply-risks on the drawn-out conflict in the Middle East and owing to an escalation of tensions in major crude producer Russia.

The health ministry in Hamas-run Gaza said Monday that at least 39,897 people have been killed in the war between Israel and Palestinian militants, now in its 11th month.

In Russia, two regions bordering Ukraine ordered more evacuations as Moscow battled to contain an unprecedented push onto its territory.

- Key figures around 1115 GMT -