Stocks rose broadly and haven assets retreated, a reversal from last week when major USA stock indexes, the dollar and Treasury yields fell as investors anxious about worst-case scenarios from summer storms and threats from North Korea.
Meanwhile, North Korea celebrated its 69th anniversary without testing any missiles or nuclear bombs alleviating concern it would use the occasion to flaunt its fire power.
Among fallers, precious metals miners Fresnillo and Randgold Resources were on the back foot as the price of safe-haven gold fell, while shares in Primark-owner Associated British Foods were the biggest FTSE decliners, down 5 percent after giving a full-year trading update.
Spread betting firm CMC Markets expects the FTSE 100 index to open around 28 points higher at 7,405 having closed 19 points lower on Friday.
The Dow Jones Industrials raced ahead 259.58 points, or 1.2%, to 22,057.37, with Goldman Sachs, Apple, 3M and insurer Travelers Cos. contributing the most to the gains. While Pyongyang didn't launch an intercontinental ballistic missile over the weekend, there was a local celebration on its nuclear test. The storm will move into Georgia and Alabama Monday night and into Tuesday.
Investors remained cautious over the possible economic impact of Hurricane Irma as it chewed its way up the Florida coast, knocking out electricity to three million homes and businesses statewide. Petersburg area, though in a weakened state.More news: These Are Donald Trump's Properties That Could Get Hit By Hurricane Irma
While devastating, Irma didn't reach the feared Category 5 storm that some had expected and looks to have spared Miami, helping the dollar push off its lowest level in more than two years.
MARKET INSIGHT: "This weekend was a case of the dog that didn't bark, or at least, not very loudly", said Rob Carnell, head of Asia research at ING. South Korea's Kospi advanced 0.7 percent to 2,359.08, Hong Kong's Hang Seng added 1 percent to 27,955.49, and the Shanghai Composite in mainland China rose 0.3 percent to 3,376.42.
CURRENCIES: The dollar strengthened as the latest developments gave traders less reason to flee to the yen, traditionally considered a haven.
The dollar hovered at ¥108.50, up from Friday's 10-month trough of ¥107.32. The euro slid to $1.1964 from $1.12028.
ENERGY: Oil futures were mixed. Royal Caribbean Cruises jumped $4.02, or 3.4 percent, to $121.47 and American Airlines gained $1.55, or 3.4 percent, to $45.15. Brent crude, used to price global oils, slipped 5 cents to $53.73 a barrel in London.