NEW YORK (Reuters) - Global equities edged higher and perceived safe havens such as U.S. Treasuries gained Monday as investors weighed further financial stimulus in China against tightening economic restrictions in Italy after a resurgence of coronavirus cases among young people.

Chinese blue chips .CSI300 led the way with gains of 2.35% as the country's central bank provided more medium-term loans to the financial system. Beijing also granted a patent for a CanSino Biologics (6185.HK) 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 .MIWD00000PUS gained 0.42% following broad rallies in Asia and slight gains in Europe.

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

The U.S. second-quarter earnings season wraps up with major retailers reporting this week including Walmart (WMT.N), Home Depot (HD.N) and Kohls (KSS.N).

Sino-American relations remain a sticking point with U.S. President Donald Trump on Saturday saying he could exert pressure on more Chinese companies such as technology major Alibaba (BABA.N) 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% 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 US30YT=RR rising 21 basis points as the curve steepened.

Benchmark 10-year notes US10YT=RR last rose 5/32 in price to yield 0.6931%, from 0.709% late on Friday, while the dollar index =USD fell 0.244%, with the euro EUR= up 0.32% to $1.1879.

U.S. crude CLc1 recently rose 1.14% to $42.49 per barrel and Brent LCOc1 was at $44.96, up 0.36% on the day