European stocks end higher on Monday

European stocks ended higher on Monday, kicking off a week that is set to see another rate cut by the European Central Bank on Thursday.

Chris Beauchamp, chief market analyst at IG, said: "China is stepping up its anti-Taiwan activity and the clock is ticking on an Israeli attack on Iran, but stock markets have ignored these and other concerns. The Dow and S&P 500 have risen to new highs in the US bank earnings lull while even the FTSE 100 has edged higher, although it remains firmly stuck in its six-week range."

"European stocks have remained supported by expectations of an ECB rate cut, although it remains to be seen whether this justifies the recent exuberance in the DAX 40."

The FTSE Mib closed Monday up 1.1%, the FTSE 100 in London closed up 0.3%, the CAC 40 in Paris rose 0.2% and the DAX 40 in Frankfurt increased 0.6%.

In New York, the Dow was up 0.2% at 42,937.57, the Nasdaq was up 0.7% at 18,469.12 and the S&P 500 was up 0.6% at 500.

Among currencies, the euro was trading at USD1.0915 versus USD1.0943 on Friday at the close of European stocks while the pound was trading at USD1.3057 from USD1.3077 on Friday evening.

Among commodities, Brent is trading at USD77.53 per barrel versus USD78.90 per barrel on Friday at the European stock market close. Gold is trading at USD2,650.04 per ounce from USD2,657.85 per ounce on Friday evening.

Tuesday's macroeconomic calendar opens with UK house prices at 0101 CEST, ahead of UK unemployment data, due at 0800 CEST. At the same time, focus is on German wholesale prices.

At 0845 CEST, eyes are on French inflation, while 15 minutes later, Spain's inflation will arrive.

At 1100 CEST, space is given to the ZEW index of German and euro area economic conditions and Eurozone industrial production.

In the afternoon, at 1700 CEST, data on US consumer inflation expectations will arrive, half an hour before the auctions of three- and six-month T-Notes. The day will close at 2000 CEST with the Federal Reserve's balance sheet.