Investing.com - European stocks climbed higher in quiet trade on Monday, as investors eyed the Federal Reserve's upcoming policy meeting amid growing expectations it will hold interest rates this month.
During European morning trade, the EURO STOXX 50 rallied 0.99%, France’s CAC 40 gained 0.94%, while Germany’s DAX 30 advanced 0.91%.
Investors remained cautious amid speculation that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday.
Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.
Financial stocks were broadly higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) added 0.15% and 0.65%, while Germany's Commerzbank (XETRA:CBKG) edged up 0.08%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) rose 0.13% and 0.47% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) climbed 0.68% and 0.78%.
Elsewhere, Airbus Group (PARIS:AIR) gained 0.68% amid reports the company is laying plans to overtake Boeing (NYSE:BA) Co. in the U.S., the largest aerospace market, starting with a new factory in Alabama.
In London, commodity-heavy FTSE 100 jumped 1.16%, boosted by sharp gains in the mining sector.
Shares in Glencore (LONDON:GLEN) climbed 0.71% and Fresnillo (LONDON:FRES) rallied 1.93%, while Rio Tinto (LONDON:RIO) and Bhp Billiton (LONDON:BLT) surged 2.37% and 2.41% respectively.
Financial stocks were also on the upside, as Lloyds Banking (LONDON:LLOY) advanced 0.49% and Barclays (LONDON:BARC) gained 0.67%, while HSBC Holdings (LONDON:HSBA) and the Royal Bank of Scotland (LONDON:RBS) jumped 0.84% and 0.94% respectively.
On the downside, WM Morrison Supermarkets PLC (LONDON:MRW) dropped 0.60% after saying last week that it plans to sell off 140 of its convenience stores for £25 million. The announcement came after the company reported a 47% drop to £126 million in pre-tax profits for the first half-year.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.31% rise, S&P 500 futures signaled a 0.41% gain, while the Nasdaq 100 futures indicated a 0.52% climb.