Wall Street wavered on Monday while European stocks recovered from heavy selling last week as traders awaited key US inflation data, with many concerned the Federal Reserve could soon lift interest rates again.

Several Fed decision-makers have warned that more tightening could be warranted to bring prices under control, tempering optimism that its hiking cycle had come to an end.

That sparked a sell-off on Friday, though a tech-led surge on Wall Street before the weekend provided traders in Asia some support on Monday and the positivity spilled over into Europe.

But with the focus firmly on Tuesday's release of the US consumer price index report for October, Europe's equity gains were held back by the cautious US opening, while the dollar was mixed in volatile trading.

"Inflation in the US is expected to have fallen to 3.3 percent last month which is within touching distance of the Fed's 2 percent target," said Craig Erlam, senior market analyst at OANDA trading platform.

"While the final push is expected to be the hardest, it will give the central bank some comfort that, despite the economy and labour market displaying remarkable resilience, a soft landing (of the economy) may still be possible," he said.

But a higher reading will reinforce expectations that more rate increases are in the cards, raising borrowing costs for businesses and consumers alike, and weighing on growth.

Fears that global rates could remain elevated for an extended period were fanned last week by European Central Bank President Christine Lagarde, who forecast a resurgence of inflation.

She added that officials would not start cutting rates for at least "the next couple of quarters".

Expectations that borrowing costs will not come down anytime soon boosted the dollar, with traders keeping an eye on its movement against the yen after Japanese authorities warned they could intervene to support their currency.

Investors will be also watching a meeting between US President Joe Biden and Chinese leader Xi Jinping at the APEC summit in San Francisco later in the week, amid signs tensions were easing between the economic heavyweights.

Chinese officials said the two would discuss "global peace and development".

Oil prices found support following weeks of retreat after the release of OPEC's monthly report for October predicted "healthy" demand through 2024 despite the war between Israel and Hamas militants in Gaza and the fears of slowing growth worldwide.

But OEPC heavyweights Saudi Arabia and Russia could signal continued supply cuts at a November 26 ministerial meeting in response to the recent price weakness.

"This should therefore limit the downside potential," said Fawad Razaqzada, market analyst at StoneX.

Key figures around 1645 GMT

New York – Dow: UP 0.1 percent at 34,234.10 points

New York – Nasdaq: DOWN 0.1 percent at 13,792.57

London – FTSE 100: UP 0.9 percent at 7,425.83 (close)

Paris – CAC 40: UP 0.6 percent at 7,087.06 (close)

Frankfurt – DAX: UP 0.7 percent at 15,345.00 (close)

EURO STOXX 50: UP 0.8 percent at 4,232.19 (close)

Tokyo – Nikkei 225: UP 0.1 percent at 32,585.11 (close)

Hong Kong – Hang Seng Index: UP 1.3 percent at 17,426.21 (close)

Shanghai – Composite: UP 0.3 percent at 3,046.53 (close)

Euro/dollar: UP at $1.0698 from $1.0686 on Friday

Pound/dollar: UP at $1.2268 from $1.2224

Euro/pound: DOWN at 87.23 pence from 87.39 pence

Dollar/yen: UP at 151.50 yen from 151.47 yen

Brent North Sea crude: UP 1.2 percent at $82.38 per barrel

West Texas Intermediate: UP 1.1 percent at $78.03 per barrel