World stocks hit a 4-1/2 week high on Monday and oil rose as investors grew confident over the prospects for the global economy after Greece avoided an early default on its debt and data pointed to a moderate slowdown in China's growth.
Shanghai stocks hit a six-week high after data last week showed Chinese manufacturing growth moderated in June, raising expectations that the economy may not be headed for a sharp slowdown despite monetary policy tightening.
Over the weekend, euro zone finance ministers approved a 12 billion euro installment of aid for Greece and said the details of a second aid package would be finalized by mid-September.
But the euro pared its gains after ratings agency Standard & Poor's said a debt rollover plan being considered for Greece may still put the country into "selective default.
"Greece was always going to be a sticking point and this issue of debt rollover and rating agencies views will be something that the market will keep an eye out for," said Jeremy Stretch, head of currency strategy at CIBC World Markets.
Read full article at Stocks at 4-1/2 week high, risk back in favour | Reuters