DAX jumps to 7-week high, runs into 100-DMA

Germany's DAX index opened higher at 12,381 this Monday morning and extended gains to 12,456; the highest level since July 21. 

The index is chewing through offers around the 100-day moving average level of 12,452. 

The risk assets caught bid today as contrary to widespread belief, North Korean dictator Kim Jong Un did not launch another missile, but North Korean decided to hold a party over the weekend. Consequently, the risk sentiment stabilized in Asia. Dovish comments from ECB's Coeure could have played a role in boosting stocks as well. 

Don't forget the uptick in Chinese PPI

Amid all the North Korea noise, investors should not ignore the fact Chinese PPI [reported on Saturday] bettered estimates. The uptick in the Chinese PPI is a net positive for the global economy as it is a sign that the world's second largest economy is exporting inflation.