European stock markets were little changed Monday despite big gains across Asia earlier as concerns of higher U.S. borrowing costs later this year diminished ahead of testimony from Federal Reserve chairman Ben Bernanke.
Continuing worries about the debt crisis afflicting Greece kept investors on their toes.
In Europe, the FTSE 100 index of leading British shares was up 12.32 points, or 0.2 per cent, at 5,370.49 while Germany's DAX fell 4.86 points, or 0.1 per cent, to 5,717.19. The CAC-40 in France was 2.85 points, or 0.1 per cent, lower at 3,766.69.
Earlier in Asia, Japan's Nikkei 225 stock index jumped 276.89, or 2.7 per cent, to 10,400.47 after earlier surging more than 3 per cent. Hong Kong's main index climbed 483.25, or 2.4 per cent, to 20,377.27. Only Chinese shares lost ground, with the main Shanghai index retreating 0.5 per cent in the first day of trade after weeklong Lunar New Year holidays.
The focus in the markets will likely be Mr. Bernanke's testimony to U.S. lawmakers on Wednesday and Thursday.
In particular, investors will be interested to hear what Mr. Bernanke says about last week's decision by the Fed to raise its discount rate by a quarter of a percentage point to 0.75 per cent - the discount rate is the rate banks pay for emergency loans from the Fed.
The discount rate rise last Thursday stoked some fears in the markets that the Fed was paving the way for possible increases in its benchmark funds rate later in the year. But the news that inflation remained extremely subdued in January coupled with comments from Fed officials suggest that the benchmark rate may not actually rise this year.
Nevertheless, there is a growing optimism that the recovery, at least in the U.S., is on a sure footing and that has helped stock markets eke out further gains over the last couple of weeks - further earnings statements from the likes of Wall Street was poised for modest gains later - Dow futures were up 23 points, or 0.2 per cent, at 10,401 while the broader Standard & Poor's 500 futures rose 2.6 points, or 0.2 per cent, to 1,108.80.
Investors around the world will also be keeping a beady eye on any developments surrounding Greece's debt crisis, which has unnerved holders of the euro currency over the last month or two. Specifically, they will be looking to see if the Greek government announces a sizable bond issue as it looks to roll over debt payments due soon.
By late-morning London time, the euro was down 0.2 per cent at $1.3607 - above last week's nine-month low of $1.3444.
Elsewhere in Asia, South Korea's market rose 2.1 per cent, while Australia's market closed up 1.8 per cent and Taiwan's market gained 1.6 per cent.
Oil prices hovered near $80 benchmark crude for March delivery up 2 cents at $79.83.