European Stocks End Higher Again As Risk Sentiment Improves

(RTTNews) - European stocks closed higher on Monday, extending recent gains, amid improved risk sentiment despite aggressive policy stance by major central banks and the likely impact on global growth.

Bank stocks had a good outing on bets of more interest rate hikes. Several stocks from materials and consumer discretionary sectors also posted handsome gains.

Investors looked ahead to U.S. inflation data, due on Tuesday, for more clues about the Federal Reserve's interest rate move at the upcoming policy meeting later this month.

Meanwhile, according to a Reuters report, a draft European Union plan says fossil fuel firms may have to share their excess profits to help European households and industries cope with red-hot energy bills.

Energy prices and inflation have surged as Moscow slashed gas supplies in response to Western sanctions imposed over its actions in Ukraine, and this has prompted France to tell consumers they would have to share some of the pain.

The pan European Stoxx 600 climbed 1.76%. The U.K.'s FTSE 100 gained 1.66%, Germany's DAX surged 2.4% and France's CAC 40 advaned 1.95%, while Switzerland's SMI ended 0.83% up.

Among other markets in Europea, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkiye closed with strong gains, while Iceland ended flat.

In the UK market, Kingfisher gained more than 6%. Howden Joinery, Tesco, Sainsbury (J), Ocado Group, Berkeley Group Holdings, Flutter Entertainment, JD Sports Fashion and Smurfit Kappa Group gained 4 to 5.6%.

Ashtead Group, Associated British Foods, B&M European Value Retail, Burberry Group, Natwest Group, WPP, Frenillo, Airtel Africa an Entain also rallied sharply.

In the German market, Daimler, Allianz, Zalando, Adidas, Fresenius Medical Care, Munich RE, Brenntag, Porsche Automobil, BASF, Deutsche Post, Adidas, BMW, Puma, Volkswagen and Deutsche Bank gained 3 to 5%.

Shares of Deutsche Lufthansa AG, flag carrier of Germany, increased 2.2%. The company agreed with the German pilots' union Vereinigung Cockpit on a pay hike for pilots at Lufthansa and Lufthansa Cargo.

In Paris, Atos surged more than 6%. Renault, Faurecia, Airbus Group, Unibail Rodamco, BNP Paribas, Schneider Electric, Credit Agricole, Essilor, Air France-KLM and Publicis Groupe gained 3 to 4.5%.

In economic news, data from the Office for National Statistics revealed that the U.K. economy expanded in July, underpinned by the rebound in the services, particularly consumer-facing services. Gross domestic product grew 0.2% on a monthly basis in July, in contrast to a fall of 0.6% in June.

Further, figures published by the statistical office CBS showed that Dutch exports increased at a softer pace in July.