Investing.com - European stocks were mostly higher in quiet trade on Monday, continuing last week's rally thanks to declining expectations for a rate hike by the Federal Reserve before the end of this year.
During European morning trade, the EURO STOXX 50 rose 0.22%, France’s CAC 40 inched up 0.07%, while Germany’s DAX 30 gained 0.74%.
Minutes from the Fed’s September policy meeting, published on Thursday, showed that most policymakers thought an initial rate hike should still come this year and that financial market turmoil had not "materially altered" the outlook for the U.S. economy.
But the minutes also noted that recent global economic and financial developments may have increased the downside risks to the U.S. economy.
The minutes reinforced expectations that U.S. interest rates will remain on hold until well into 2016.
Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) dipped 0.06% and 0.08%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) gained 0.55% and 1.39%.
Among peripheral lenders, Italy's Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) fell 0.17% and 0.31% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) lost 0.05% and 0.19%.
Elsewhere, Stora Enso Oyj R (HE:STERV) soared 7.72% after the Finnish pulp and paper maker said third-quarter operating profit would be larger than expected.
Fiat Chrysler (N:FCAU) Automobiles NV (MI:FCHA) added to gains, with shares up 2.61%, after it launched its initial public offering of Ferrari. The Italian automaker owns 90% of Ferrari's issued and outstanding share capital.
The initial public offering price is expected to be between $48 and $52 per share and will trade under the symbol "RACE" on the New York Stock Exchange.
In London, FTSE 100 dropped 0.41%, weighed by losses in the financial sector.
Shares in HSBC Holdings (L:HSBA) slid 0.38% and Barclays (L:BARC) declined 0.43%, while the Royal Bank of Scotland (L:RBS) dropped 0.48% and Lloyds Banking (L:LLOY) lost 0.88%.
Vodafone (L:VOD) was also on the downside and slid 0.61%, even as the telecom giant won its appeal in a $1.31 billion tax dispute over the acquisition of its Indian unit in 2007.
Meanwhile, mining stocks were broadly higher, as Rio Tinto (L:RIO) edged up 0.17% and Glencore (L:GLEN) added 0.19%, while Bhp Billiton (L:BLT) rose 0.25% and Randgold Resources (L:RRS) gained 0.81%.
In the U.S., markets were to remain closed for a national holiday.