European stocks bounced around Monday while US equities shook off early weakness to push higher as investors waited to see if a so-called Santa Claus rally sweeps over the market.Global stock markets had a tumultuous time last week, spiraling lower after the US Federal Reserve signaled fewer interest rate cuts than had been expected for 2025.But it ended on a positive note as traders welcomed below-forecast US inflation data that raised hopes about the health of the world’s biggest economy.That helped Asian markets move higher on Monday, but the positive trend faltered in Europe and stumbled initially in the United States.”Another up leg in US yields not only put pressure on stock indices but also drove the greenback higher,” said IG analyst Axel Rudolph.But after a sluggish start, US stocks rose progressively in a quiet session with analysts pointing to low pre-holiday trading volumes.”Stocks didn’t really have any direction in the morning, then we got this tech rally that just sort of drifted higher all day,” said Steve Sosnick of Interactive Brokers.Analysts view elevated Treasury bond yields as a threat to year-end gains in an historically strong period of the calendar.Known as a Santa Claus rally, there are various explanations for the phenomenon including seasonal optimism and end-of-year tax considerations. But there remains some trepidation among investors as Donald Trump prepares to return to the White House, pledging to cut taxes, slash regulations and impose tariffs on imports, which some economists warn could reignite inflation.”The initial response to the US election was positive as investors focused on the obvious tailwinds to profitability: lower corporate tax rates and less regulation,” said Ronald Temple, chief market strategist at Lazard. “However, I expect much more dispersion within the equity market when the reality of a much-less-friendly trade environment sets in.”In Europe, the FTSE 100 moved higher as the pound slid following data that showed that the UK economy stagnated in the third quarter, revised down from initial estimates of 0.1 percent growth. Official data out of Spain on Monday showed that the Spanish economy grew 0.8 percent in the third quarter as domestic consumption and exports increased, comfortably outstripping the European Union average.In company news, shares in crisis-hit German auto giant Volkswagen lost more than three percent on the back of news Friday that it plans to axe 35,000 jobs by 2030 in a drastic cost-cutting plan.Shares in Japanese auto giant Honda rose over three percent after it announced Monday an agreement to launch merger talks with struggling compatriot Nissan that could create the world’s third largest automaker.- Key figures around 2130 GMT -New York – Dow: UP 0.2 percent at 42,906.95 (close)New York – S&P 500: UP 0.7 percent at 5,974.89 (close)New York – Nasdaq Composite: UP 1.0 percent at 19,764.89 (close)London – FTSE 100: UP 0.2 percent at 8,102.72 (close)Paris – CAC 40: FLAT at 7,272.32 (close)Frankfurt – DAX: DOWN 0.2 percent at 19,848.77 (close)Tokyo – Nikkei 225: UP 1.2 percent at 39,161.34 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,883.13 (close)Shanghai – Composite: DOWN 0.5 percent at 3,351.26 (close)Euro/dollar: DOWN at $1.0408 from $1.0430 on FridayPound/dollar: DOWN at $1.2531 from $1.2570Dollar/yen: UP at 157.14 yen from 156.31 yen Euro/pound: UP at 83.03 pence from 82.97 penceWest Texas Intermediate: DOWN 0.3 percent at $69.24 per barrelBrent North Sea Crude: DOWN 0.4 percent at $72.63 per barrelburs-jmb/jgc