Investing.com - European stocks opened sharply higher on Tuesday, after oil prices slightly rebounded late Monday and as markets turned their focus to this week's policy decision by the Federal Reserve.
During European morning trade, the EURO STOXX 50 jumped 1.61%, France’s CAC 40 advanced 1.77%, while Germany’s DAX 30 rallied 1.69%.
Most investors expect the Fed to raise interest rates for the first time since June 2006 at its upcoming meeting due to begin later Tuesday.
Market participants also continued to focus on oil prices as they moved back above the $35 threshold after falling to the lowest levels since February 2009 on Monday amid expectations that a global supply glut will worsen next year.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rallied 1.93% and 1.84%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) gained 0.30% and 1.20%.
Among peripheral lenders, Italy's Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) surged 1.79% and 2.16%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) rose 0.21% and 1.39% respectively.
Elsewhere, Sanofi (PA:SASY) saw shares soar 3.85% after the French drugmaker and Boehringer Ingelheim GmbH said they are in exclusive talks to swap assets worth €18.1 billion.
Hennes & Mauritz AB (ST:HMb) added to gains, with shares up 0.98%, even after the retailer reported revenue below analysts’ estimates as mild weather weighed on demand in North America and Europe.
In London, commodity-heavy FTSE 100 jumped 1.36%, boosted by sharp gains in the mining sector.
Shares in Rio Tinto (L:RIO) rallied 1.76% and Bhp Billiton (L:BLT) gained 2.76%, while Glencore (L:GLEN) surged 3.19%.
Financial stocks were also on the upside, as the Royal Bank of Scotland (L:RBS) advanced 1.13% and HSBC Holdings (L:HSBA) climbed 2.22%, while Barclays (L:BARC) and Lloyds Banking (L:LLOY) surged 2.25% and 3.63% respectively.
Meanwhile, GlaxoSmithKline PLC (L:GSK) shares jumped 1.37% following reports Amgen Inc (O:AMGN). will reacquire the rights to three drugs in 48 countries from the British company as part of a plan to develop its own international sales infrastructure for future products.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.40% increase, S&P 500 futures signaled a 0.42% climb, while the Nasdaq 100 futures indicated a 0.39% gain.