Wall Street is continuing to climb back from its worst week in two years, as European stocks join the recovery rally.
European markets pushed higher with gains of more than 1 per cent in Germany, France and the UK.
Mining and energy stocks were among the best performers in London, as higher crude oil prices boosted major oil companies including Royal Dutch Shell and BP.
The London listings of BHP and Rio Tinto also made gains.
Broad-based gains for US markets
On Wall Street, the Dow Jones rose by more than 500 points at times during its Monday session.
The tech-heavy Nasdaq index rose 1.7 per cent and Apple and Amazon made gains.
All sectors of the S&P 500 index were higher, led by the materials space, as United States President Donald Trump unveiled his new budget.
US treasury yields rose, with the 10-year yield hitting a fresh four-year high.
Investors are now awaiting key inflation data due out on Wednesday, US time.
Reporting season rolls on
Locally, futures are higher, indicating it should be a positive start for the Australian market.
Yesterday the ASX failed to follow the positive lead from Wall Street's Friday session, as the banks weighed on the broader market as the financial services royal commission got underway.
Earnings reports will continue to flow in this session, with results due from building materials maker Boral and medical device firm Cochlear.
On the economic front, NAB will release its monthly business survey for January, giving an indication of how confident companies are feeling and how they view the business environment.
