US open: Dow jumps almost 170 points but oil prices continue to fall

US stocks advanced on Monday, buoyed by strong performances in the European and Asian markets.

Just before 10:00 in New York, the Dow Jones Industrial Average was up 167 points, while the S&P 500 and the Nasdaq were 11 and 23 points up respectively.

On Friday, Wall Street registered their third weekly loss amid a surging dollar and tumbling oil prices but markets edged forward on Monday, in the wake of positive news from Europe and China.

Eurozone economies, Germany in particular, opened the week in strong fashion, with the DAX 30 index edging over 12,000 points for the first time, while the Shanghai Composite Index jumped 2.3% to settle at its highest level in almost six years.

The Federal Reserve will release the statement from its two-day FOMC meeting on Wednesday, as investors wait to see whether it will remove the word “patient” from its stance, which would be seen as a clear indication of an imminent hike in interest rates.

"It is not often that US markets have played second fiddle to their European counterparts, but the driving force of the European QE scheme continues to see them set the pace as US equity indices struggle to keep up," said IG analyst Alastair McCaig.

In company news, Life Time Fitness climbed 5% after the fitness operator agreed to a takeover offer by private-equity firm TPG and Leonard Green & Partners L.P. for $72.10 a share.

Streaming video service Netflix fell over 3% after being downgraded by analysts at Evercore ISI, while clothing company Quiksilver slid 1% ahead of its first quarter results in which it is expected to announce a loss of 12 cents a share.

Oil prices tumbled, with West Texas Intermediate slumping to its lowest level since March 2009 as a growing supply glut continued to concern investors.

“The growing supply-glut as suggested by the IEA has helped oil prices drop again after having traded sideways since January," said CMC Market Analyst Jasper Lawler.

"A renewal of the downtrend in oil prices could weigh on the energy sector of the major stock averages.”

West Texas Intermediate was down 1.95% to $43.98 a barrel, while Brent crude lost 2.3% to $53.43 a barrel.

Gold futures gained 0.46% to $1,157.70, while the dollar fell over 1% against the euro. The greenback was in retreat against the pound and the yen, losing 0.41% and 0.13% respectively.