Investing.com - European stocks opened higher on Monday, as investors turned their attention to the Federal Reserve’s upcoming policy meeting amid ongoing uncertainty over a potential rate hike.
During European morning trade, the EURO STOXX 50 rallied 1.13%, France’s CAC 40 surged 1.30%, while Germany’s DAX 30 gained 0.83%.
Strong U.S. inflation data on Friday sparked fresh speculation over a potential U.S. rate hike this month.
The U.S. Commerce Department said the consumer price index rose 0.2% in August, compared to expectations for a 0.1% gain. Year-over-year, consumer prices increased 1.1%, above expectations for a gain of 1.0%.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) gained 0.75% and 0.93%, while Germany’s Commerzbank (DE:CBKG) advanced 0.81%.
However, Deutsche Bank (DE:DBKGn) shares were down 1.00%, still hit by the U.S. Department of Justice’ demand to pay $14 billion to settle allegations of mis-selling mortgage securities.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) rallied 1.79% 1.98% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) climbed 0.90% and 1.13%.
Elsewhere, Siemens AG (DE:SIEGn) jumped 1.25% even after Chief Executive Officer Joe Kaeser said the company’s revenue and orders may be dampened if geopolitical issues lead customers to delay spending on projects.
Meanwhile, a rebound in oil prices pushed energy-related stocks higher on Monday. French oil and gas major Total SA (PA:TOTF) surged 2.08% and ENI (MI:ENI) jumped 2.72%, while Norwegian rival Statoil (OL:STL) climbed 1.36%.
In London, commodity-heavy FTSE 100 surged 1.27%, boosted by sharp gains in the mining sector.
Shares in Rio Tinto (LON:RIO) and Glencore (LON:GLEN) rallied 2.81% and 2.92% respectively, while BHP Billiton (LON:BLT) surged 2.98% and Anglo American (LON:AAL) soared 3.56%.
Financial stocks added to gains, as Lloyds Banking (LON:LLOY) climbed 0.83% and Barclays (LON:BARC) advanced 1.67%, while HSBC Holdings (LON:HSBA) and the Royal Bank of Scotland (LON:RBS) jumped 1.96% and 1.97% respectively.
Sky Plc (LON:SKYB) was also one of the top performers on the index, with shares up 3.10% after analysts at Beaufort Securities reiterated their ‘buy’ rating on the stock.
On the downside, Capita Plc (LON:CPI) tumbled 1.03% after the British Medical Association blasted the company last week, saying that “systematic failures” could be putting patients’ safety at risk.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.45% gain, S&P 500 futures showed a 0.45% increase, while the Nasdaq 100 futures indicated a 0.47% climb.