The pan-European STOXX 600 index closed up 0.6%, hitting a three-week high amid broad-based market gains, after posting its biggest weekly gain in three months.
Having recovered much of the recent lost ground, the benchmark index stood firm above the 500-point mark after slipping below the key August 2 level.
All major regional markets such as Germany, France, Italy and Spain rose between 0.5% and 1.4%.
Miners metal prices gained 2% tracking strength, while online fashion marketplace Zalando and British sportswear retailer JD Sports led the charge among retail stocks.
Meanwhile, defense stocks fell after a report that the German Finance Ministry would not approve additional requests for Ukraine military aid due to budget constraints.
Hensoldt, Rank, BAE Systems, Saab, Thales and Leonardo were down between 0.8% and 5.4%.
“The consolidation phase is going to last for the next few days… That’s where the indecision comes back in. Now it’s back to assessing what’s out there and how these factors might impact,” said Daniella Hathorne, senior market analyst. Capital.com. Investors are now gearing up for another week full of crucial economic data, including Euro Zone inflation and PMI numbers, US PMI numbers and weekly jobless claims.
However, the main focus this week is the gathering of global central banks in Jackson Hole, Wyoming, where Fed Chair Powell is expected to speak on Friday and offer some clues on the Fed’s monetary policy path.
Minutes from the Fed’s July policy meeting are also due on Wednesday.
“The easiest thing for Powell to do is repeat his message from July. The evolution of July’s FOMC language suggests the committee is ‘very close’ or ‘close’ to the point where easing is likely,” Bank of America analysts said.
Among others, Finnish mining equipment maker Metso rose 3.7%, but added to gains after a news report clarified there were no ongoing plans for a merger with rival mining equipment business unit of Sweden’s Sandvik.
UK homebuilders Barrett and Redrow rose 3.4% and 4.5% respectively, after the competition regulator waived a condition for its former acquisition of a smaller rival to satisfy legal perfection this week.
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