Eurozone stocks rise and bonds fall as traders assess policy direction

European stocks extended their gains on Monday, while government bonds in the region were hit by a fresh bout of selling, as traders assessed how far inflationary pressures would push the bloc’s central bank to tighten monetary policy.

The regional Stoxx Europe 600 share gauge and Germany’s Dax index both rose 0.5 per cent. Those moves followed upticks in Asian markets, with Hong Kong’s Hang Seng index and Japan’s Topix rising…