Global equities edged higher and perceived safe havens such as US Treasuries gained Monday as investors weighed further fiscal stimulus in China against tightening economic restrictions in Italy after a resurgence of coronavirus cases among young people.

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Chinese blue chips led the way with gains of 2.35 percent as the country's central bank provided more medium-term loans to the financial system. Beijing also granted a patent for a CanSino Biologics COVID-19 vaccine candidate, Ad5-nCOV.

Coronavirus cases in Italy have doubled over the past two weeks, prompting the country to reimpose restrictions on bars and nightclubs.

Rabobank strategist Bas Van Geffen said the past few months had seen optimism build about a strong economic bounce-back, but the reimposition of restrictions was an indication of challenges.

"We have already cautioned that this is not going to be a V- shaped recovery ... and perhaps this is a sort of a sign to the markets that it is not going to be (a quick recovery)", Van Geffen said.

MSCI's gauge of stocks across the globe gained 0.42 percent following broad rallies in Asia and slight gains in Europe.

In morning trading on Wall Street, the Dow Jones Industrial Average fell 73.85 points, or 0.26 percent, to 27,857.17, the S&P 500 gained 9.25 points, or 0.27 percent, to 3,382.1 and the Nasdaq Composite added 94.49 points, or 0.86 percent, to 11,113.79.

The US second-quarter earnings season wraps up with major retailers reporting this week including Walmart, Home Depot and Kohls.

Sino-American relations remain a sticking point with US President Donald Trump on Saturday saying he could exert pressure on more Chinese companies such as technology major Alibaba after he moved to ban TikTok.

Investors are looking ahead to Wednesday when the Federal Reserve will release minutes from its latest policy meeting.

"Market participants will be looking for insight into the details and exact timing of when the Fed's Monetary Policy Review will be completed, and also for more clarity with respect to the potential timing and structure of any changes to forward guidance," analysts at NatWest Markets noted.

Speculation is rife that the Fed will adopt an average inflation target, which would seek to push inflation above 2 percent for some time to make up for the years it has run below that level.

That combined with massive new debt supply caused a sharp increase in longer-term bond yields last week, with 30-year yields rising 21 basis points as the curve steepened.

Benchmark 10-year notes last rose 5/32 in price to yield 0.6931 percent, from 0.709 percent late on Friday, while the dollar index fell 0.244 percent, with the euro up 0.32 percent to $1.1879.

US crude recently rose 1.14 percent to $42.49 per barrel and Brent was at $44.96, up 0.36 percent on the day.