The continent-wide STOXX 600 index rose 0.5% to 517.74 points, and Britain’s FTSE 100 outperformed its European peers with a 0.7% jump.
All sectors were trading higher, led by basic resources up about 1%, as greenback-priced copper edged higher on a softer dollar and expectations of a US rate cut.
Banks and travel stocks also boosted the market, each gaining 0.8%.
Investors will be fully focused on the Fed’s decision on Wednesday, with markets now pricing in a 67% chance that the US central bank could ease rates by 50 basis points.
-
Stock trading
Market 101: Insights into Trendlines and Momentum
-
Stock trading
Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading
-
Stock trading
Market 103: Mastering Trends with RMI and Techno-Funda Insights
-
Stock trading
Market 104: Options Trading: Kickstart Your F&O Venture
-
Stock trading
Introduction to Technical Analysis and Candlestick Theory
-
Stock trading
Options Scalping Made Easy
-
Stock trading
Futures Trading Made Easy: Futures and Options Trading Course
-
Stock trading
Options Trading Made Easy: Options Trading Course
“I think there is some volatility and nervousness in the market about the growth environment, maybe about politics. But overall really about the decisions of central banks,” said Yvan Mamalet, senior economic strategist at SG Kleinwort Hambros.
“I don’t think it’s just the Fed. I think the Bank of Japan’s decision over the weekend – the communication also leads to uncertainty and maybe even panic.”
Markets will closely monitor a German sentiment survey at 0900 GMT which is expected to show a slight deterioration in September and US retail sales, due at 1230 GMT, are forecast to have contracted in August on a monthly basis.
European Central Bank supervisor Claudia Buch and board members Elizabeth McCall and Frank Alderson will speak later in the day.
In stocks, Kingfisher was the top gainer, rising 7.1% after the European home improvement retailer raised the bottom end of its profit outlook for the full year.
Shares of Barry Callebaut rose 7% after Barclays raised the stock’s rating to “overweight” from “overweight”.
Sweden’s Thule Group slipped 6.7% to the bottom of the STOXX 600 as its second-quarter revenue fell and its debt rose.
Playtech fell 2.3% after the British gambling technology firm agreed to sell its Italian unit Snetech for 2.3 billion euros ($2.56 billion), including debt, to Flutter Entertainment, the world’s largest betting company.
Shares of Flutter were up 0.8%.
(Reporting by Shubham Batra in Bengaluru; Editing by Sherry Jacob-Phillips)
(You can now subscribe to our ETMarkets WhatsApp channel)