In Europe, the FTSE 100 index of leading British shares was up 60.19 points, or 1.1 percent, at 5,561.83 while Germany’s DAX rose 63.14 points, or 1 percent, to 6,277.91.

In the US, the Dow Jones industrial average was up 75.45 points, or 0.7 percent, at 10,538.22 soon after the open while the broader Standard & Poor’s 500 index rose 10.69 points, or 1 percent, to 1,120.24.

The positive start to the week has come after central bankers agreed on new rules to require banks to hold more capital as a buffer against future difficulties and Chinese figures showing that growth in industrial production accelerated to 13.9 percent year-on-year in August from July’s 13.4 percent increase.w

The main relief in the markets over the conclusion of the so-called Basel III negotiations Sunday is that the proposals for new bank rules appear to be less onerous than many in the markets had been predicting last week.

The recommendations, which have to be ratified by the Group of 20 leading industrial and developing nations in November, will require banks to hold as much as 7 percent of their capital in reserve for a rainy day — one of the main reasons why the world suffered its deepest recession since World War II was that the banks were badly undercapitalized when the financial crisis broke around three years ago.

Though the new ratio is way higher than the 2 percent banks held in the run-up to the financial crisis, they will have up until 2018 to implement the rules fully.

“Basel III is viewed as less stringent than investors had expected and the long implementation period takes some of the immediate pressure off banks,” said Eric Viloria, an analyst at Forex.com.

Across Europe, banks were leading the march ahead Monday, including Deutsche Bank AG, which made up some of the ground lost Friday amid speculation that it was to announce a massive cash-raising exercise.

That was confirmed Sunday when Deutsche Bank announced it is planning to raise at least $12.4 billion to mainly finance a takeover of retail lender Deutsche Postbank AG.

Analysts said the banking rules agreement has helped underpin investor confidence at the start of a busy economic news week, particularly in the US.

“The week is off to a good start with strong Chinese output data, and market solace courtesy of a very gradual phasing in on Basel III requirements,” said Daragh Maher, an analyst at Credit Agricole.

There will be a lot of interest in Tuesday’s release of US retail sales in August as investors get a chance to see if the growing talk of a double-dip recession during the month reined in consumption.

The retail figures are particularly important because US consumer spending accounts for around 70 percent of the world’s largest economy. The improvement in sentiment was visible in the currency markets, too, where the euro rose more than a cent, or 1 percent, on the day to $1.2830.

Generally when investors have a higher appetite for risk, they move out of safer assets such as bonds and the dollar into stocks, oil and other currencies.

Oil prices were higher, too, with benchmark crude for October delivery up 70 cents at $77.15 a barrel in electronic trading on the New York Mercantile Exchange. The contract surged $2.20 to settle at $76.45 a barrel on Friday.