Morning MoneyBeat Europe: Stocks Edge Higher, Helped By Chinese Gains

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European stocks saw minor gains at the open Monday, boosted by gains in China. But with a lack of economic data in Europe and a holiday in the U.S., volumes are likely to limited and investors trade with caution.

Investors will continue to digest the Federal Reserve's cautious stance on raising interest rates, with Fed Vice Chairman Stanley Fischer on Sunday addressing a rate rise at an event on the sidelines of the International Monetary Fund's annual meetings in Peru.

Mr. Fischer said the U.S. central bank is taking a cautious approach in its deliberations about raising interest rates, considering developments overseas as well as the effect of higher interest rates on emerging markets and elsewhere.

"There may well have been more comments on foreign economic developments in recent FOMC statements than was common in the past," he said. "That is natural given the increasing influence of foreign economic developments on the United States economy, both through imports and exports, and through capital account developments."

In U.S. markets on Friday, the Dow gained 33.74 points, or 0.2%. The S&P 500 added 0.1% and the Nasdaq Composite rose 0.4%.

The price of oil jumped 9% in the past five trading sessions, lifting shares of exploration and production companies. Energy companies in the S&P 500 gained 7.8% in the past week.

"We've had a really strong rally since last week, and now earnings are the focus," said Brett Mock at JonesTrading Institutional Services. "Longer-term investors are waiting for earnings and to see how management guides for the rest of the year."

Stocks in China and Hong Kong rallied Monday on stimulus measures from Beijing and signals of reform in the country's telecommunications sector.

The Shanghai Composite Index rose 3.3%, while Chinese firms in Hong Kong led the Hang Seng Index up 1%. China's central bank announced over the weekend that it would expand a pilot program that would boost banks' lending abilities.

Watch for: OECD harmonised unemployment rates; U.S. Columbus Day holiday; Fed’s Dennis Lockhart and Fed’s Charles Evans speeches

Market Snapshot: FTSE 100 down 0.27%, CAC 40 up 0.07% and DAX up 0.71%. Nikkei was closed Monday. Brent crude up 0.84% at $53.09. Gold up 0.76% at $1164.70. EUR/USD at $1.1380. Ten-year Treasury yield lower at 2.088%, Bund yield lower at 0.607%, Gilt yield higher at 1.757%.

What You May Have Missed on MoneyBeat

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Short-Seller Jim Chanos Makes Tesla’s Tough Week Even Worse: Short-seller Jim Chanos added insult to injury to Tesla Motors Inc. this week. The electric-car company’s stock is down 10.3% the past five days, on track for its worst weekly percentage performance in more than a year. That’s after billionaire hedge fund manager Mr. Chanos talked down the stock Thursday and several Wall Street analysts downgraded their view on shares over the past few days.

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From The Wall Street Journal

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Beijing’s Market Rescue Leaves China Stocks Stuck in the Doldrums: Six weeks after the Chinese stock market hit a floor following a sustained selloff, Beijing can claim credit for halting the decline—but not much else.