Investing.com - European stocks were sharply higher on Monday, as the Federal Reserve's optimism over the U.S. economic recovery continued to support global equities in holiday-thinned trade.
Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.
During European morning trade, the EURO STOXX 50 rallied 1.13%, France’s CAC 40 jumped 1.12%, while Germany’s DAX 30 advanced 0.72%.
Equities markets remained supported after the Fed said last week that it would be "patient" before raising rates, guidance which it said is consistent with earlier assurances statement that rates would stay low "for a considerable time."
The central bank also acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.
Earlier Monday, official data showed that German import prices dropped 0.8% in November, compared to expectations for a 0.5% loss, after a 0.3% downtick in October.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) climbed 0.85% and 1.51%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) jumped 1.10% and 0.70%.
Among peripheral lenders, Italy's Unicredit and Intesa Sanpaolo rallied 1.46% and 1.60% respectively, while Spanish banks BBVA and Banco Santander were up 0.04% and 0.53%.
Elsewhere, Indra (MADRID:IDR) saw shares surge 2.57% after Spanish newspaper El Mundo reported that Antonio Hernandez Mancha is in talks with the nation's government to buy a 20% stake in the Spanish information technology giant for British fund Hanson.
In London, commodity-heavy FTSE 100 jumped 1.05%, boosted by sharp gains in the enery sector.
Shares in Royal Dutch Shell (LONDON:RDSa) rallied 1.91% and BP (LONDON:BP) surged 1.93%, while Tullow Oil (LONDON:TLW) shares soared 2.36%.
Also on the upside, Afren (LONDON:AFRE) skyrocketed 16.10% after the oil and gas exploration and production company said it received an early approach from Seplat Petroleum Development Co.
Financial stocks added to gains, as Lloyds Banking (LONDON:LLOY) advanced 0.95% and Lloyds Banking (LONDON:LLOY) climbed 1.14%, the Royal Bank of Scotland (LONDON:RBS) and Barclays rallied 1.17% and 1.23% respectively.
Meanwhile, mining stocks were mixed. Shares in Rio Tinto climbed 0.49% and Glencore Xstrata (LONDON:GLEN) gained 0.65%, while Antofagasta slid 0.37% and Randgold Resources plummeted 2.47%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.29% gain, S&P 500 futures signaled a 0.27% rise, while the Nasdaq 100 futures indicated a 0.37% increase.