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Global stocks edged higher in volatile trade on Monday, even though Beijing denied it would consider easing its zero COVID-19 policy, which stemmed safe-haven flows into the dollar ahead of potentially pivotal consumer inflation data this week.

Risk assets had rallied on Friday amid speculation China was preparing to relax its pandemic restrictions, but over the weekend health officials reiterated their commitment to the "dynamic-clearing" approach to COVID cases as soon as they emerge.

"We can question whether the China story has any veracity, but the market is quite happy to give it credence for the moment, despite the big denials," CIBC Capital Markets head of G10 currency strategy Jeremy Stretch said.

By mid-morning in Europe, an overnight rally in the dollar had fizzled out, as traders clung on to the idea that China could temper some of its restrictions, after the government on Monday indicated it will make it easier for people to enter and exit the capital.