European shares rose on Monday, following a positive trend set at the end of last week and overnight in Asia-Pacific markets.
The pan-European Stoxx 600 climbed 1.1% in early afternoon, with retail shares jumping 3.6% to lead gains as all sectors and major bourses traded in positive territory.
European shares took heart last week from the hawkish tone struck by the European Central Bank on monetary policy, as policymakers look to rein in record high inflation in the 1[ads1]9-member eurozone. The momentum continued on Monday.
Global markets are bracing for the latest reading on US inflation, with the August data set to be released on Tuesday.
The report is one of the last data on inflation the US central bank will see before its September meeting, where the central bank is expected to deliver its third consecutive rate hike of 0.75 percentage points in an effort to combat high inflation.
Fed Chair Jerome Powell reiterated last week that he is “strongly committed” to bringing down inflation.
US stock futures rose in pre-market trading on Monday, while Asia-Pacific shares rose in overnight trade on improved risk sentiment. Markets in Mainland China, Hong Kong and South Korea are closed for a public holiday.