Better eurozone outlook lifts stocks; US hit new records

The Frankfurt and Paris markets each climbed about one percent following the eurozone forecast, while all three major US indices notched fresh records for the third straight day.

US stocks extended a rally sparked after President Donald Trump's comments Thursday that he plans to release details of a tax cut plan soon.

The Dow climbed 0.7 percent to end at 20,412.16.

US analysts described Monday's gains as a continuation of the momentum from last week.

"I am getting a sense of a party atmosphere and investors just do not want to be left out," said Jack Ablin, chief investment officer at BMO Private Bank.

The European Commission said in its winter economic forecast the 19-country eurozone will grow 1.6 percent in 2017 and 1.8 percent in 2018. That improves slightly on the November estimates of 1.5 percent this year and 1.7 percent next.

For the first time in a decade, since before the financial crisis, all of the EU 28 EU member states were predicted to grow during the three-year forecast period.

However, the report cautioned that the region is vulnerable to "exceptional risks" of Brexit and actions by the Trump administration.

The report also cited several upcoming European elections in 2017, which could potentially extend a populist winning streak that led to Trump's victory and the British vote to exit the EU.

Analysts also have expressed skepticism about Trump's agenda after much of the first three weeks of his presidency focused on controversial stances on immigration and trade.

Bill Lynch, director of investment at Hinsdale Associates in the US, noted that Trump has not released specifics on taxes.

"It's just a carry over from last week," he said. "The market seems to be giving Trump the benefit of the doubt."

 Key figures around 2200 GMT 

New York - Dow: UP 0.7 percent at 20,412.16 (close)

New York - S&P 500: UP 0.5 percent at 2,328.25 (close)

New York - Nasdaq: UP 0.5 percent at 5,763.96 (close)

London - FTSE 100: UP 0.3 percent at 7,278.92 points (close)

Frankfurt - DAX 30: UP 0.9 percent at 11,774.43 (close)

Paris - CAC 40: UP 1.2 percent at 4,888.19 (close)

EURO STOXX 50: UP 1.2 percent at 3,309.06

Tokyo - Nikkei 225: UP 0.4 percent at 19,459.15 (close)

Hong Kong - Hang Seng: UP 0.6 percent at 23,710.98 (close)

Shanghai - Composite: UP 0.6 percent at 3,126.84 (close)

Euro/dollar: DOWN at $1.0597 from $1.0638

Pound/dollar: UP at $1.2525 from $1.2485

Dollar/yen: UP at 113.77 yen from 113.25 yen

Oil - Brent North Sea: DOWN $1.11 at $55.59 per barrel

Oil - West Texas Intermediate: DOWN 93 cents at $52.93 per barrel