Europe and Asia advance

On Monday equities advanced in Europe and Asia, giving investors a reprieve from the rout in stocks and the highest volatility spike since 2015. The dollar fell with Treasuries amid concern President Donald Trump’s budget proposal will drop his party’s goal to balance the budget in 10 years.

The Stocks Europe 600 index climbed, led by miners and chemical makers, while S&P 500 futures jumped. A cheaper dollar supported commodities, with metals higher and crude oil halting a six-day selloff. South Korean equities and the won rose after North Korean leader Kim Jong Un invited his counterpart to meet. Japan’s markets were closed for a holiday.

Traders however remained on edge following tumultuous moves in equities last week, which saw the S&P 500 post its worst week in two years with a 5.2 percent decline on fears over interest rate hikes. The Cboe Volatility Index dropped on Monday after an almost three-fold jump since late January when the turbulence erupted.

Asian stocks were buoyed by the attempts to thaw the tensions on the Korean Peninsula. Vice President Mike Pence told the Washington Post the U.S. is ready to engage in talks about North Korea’s nuclear program, signaling a shift in policy. The won outperformed all major currencies.

The Stoxx Europe 600 Index climbed 1.4 percent as of 7:21 a.m. New York time. The MSCI All-Country World Index jumped 0.4 percent, the largest increase in more than two weeks. Futures on the S&P 500 Index gained 1.2 percent. The U.K.’s FTSE 100 Index rose 1.2 percent.

West Texas Intermediate crude surged 1.7 percent to $60.22 a barrel, the first advance in more than a week and the biggest jump in almost three weeks. Gold rose 0.2 percent to $1,319.12 an ounce, the largest advance in a week. LME copper gained 1.2 percent to $6,837.00 per metric ton, the first advance in a week.