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(Bloomberg) -- European stocks followed their Asian counterparts higher before the start of an earnings season that’s expected to produce strong enough profit outlooks to support near-record high equity prices. The euro and the pound retreated against the dollar.

The Stoxx Europe 600 index extended its biggest weekly advance since April after shares from Hong Kong to Sydney climbed. Markets in Tokyo were closed Monday for a holiday. Samsung Electronics Co. and a slew of European and U.S. banks are among companies giving results this week. Oil traded above $61 a barrel.

With risk assets enjoying a strong start to 2018, corporate earnings may dictate the next move for equity markets. The S&P 500 Index posted its best week since December 2016 as investors speculated that Republican tax cuts will lead to higher company profits. In Europe, attention is turning to an expected reshuffle of U.K. Prime Minister Theresa May’s top team and a challenge from hard-liners in German Chancellor Angela Merkel’s talks on setting up a government -- restraining both the pound and the single currency.

South Korea’s currency reversed gains as authorities said they would take action to stem one-sided moves in the won. The comments came one day before the nation is slated to hold high-level talks with North Korea for the first time since 2015.

Here are some of the other main events to watch for this week:

  • U.S. inflation data will probably show price pressures remain muted, giving hawks little reason to argue for faster tightening.
  • San Francisco Fed President John Williams and head of the New York Fed Bill Dudley are among policy makers scheduled to speak. 
  • China producer and consumer prices data are due Wednesday, while a reading on the country’s money supply is expected in coming days.
  • U.S. firms announcing earnings this week include JPMorgan Chase & Co., Wells Fargo & Co. and BlackRock Inc.

Terminal users can read more in our markets blog.

These are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index increased 0.2 percent as of 9:28 a.m. London time to its highest intraday level in more than two years.
  • The MSCI All-Country World Index was steady, close to its all-time record.
  • The MSCI Emerging Market Index gained 0.3 percent, hitting the highest in almost seven years, with its fifth consecutive advance.
  • Futures on the S&P 500 Index climbed less than 0.05 percent.

Currencies

  • The euro dipped 0.3 percent to $1.1989, the lowest in more than a week.
  • The Bloomberg Dollar Spot Index climbed 0.3 percent to 1,155.99, in the biggest increase in more than three weeks.
  • The British pound fell 0.3 percent to $1.3534.

Bonds

  • The yield on 10-year Treasuries decreased less than one basis point to 2.47 percent.
  • Germany’s 10-year yield decreased one basis point to 0.43 percent, the lowest in a week.

Commodities

  • Gold dipped 0.2 percent to $1,316.55 an ounce.
  • West Texas Intermediate crude climbed 0.1 percent to $61.48 a barrel.
  • Copper fell less than 0.05 percent to $3.23 a pound, the lowest in more than two weeks.

To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net, Natasha Doff in Moscow at ndoff@bloomberg.net.

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Todd White

©2018 Bloomberg L.P.

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