European stocks advanced on Monday, following a positive trend established late last week and overnight in Asia-Pacific markets.
The pan-European Stoxx 600 climbed 1.2% by mid-afternoon as retail stocks jumped 4% to lead the gains, with all sectors and major exchanges trading in positive territory.
European equities rejoiced last week at the hawkish tone set by the European Central Bank on monetary policy, as policymakers seek to contain record inflation in the 19-member eurozone. The momentum continued on Monday.
Global markets are bracing for the latest reading of US inflation, with August data due out on Tuesday.
The report is one of the last inflation data the US Federal Reserve will see ahead of its September meeting, where the central bank is expected to make its third consecutive hike of 0.75 percentage points in a bid to combat a high inflation.
Fed Chairman Jerome Powell reiterated last week that he was “strongly committed” to bringing inflation down.
U.S. stock futures climbed in premarket trading on Monday, while Asia-Pacific stocks rose in overnight trade on improving risk sentiment. Markets in mainland China, Hong Kong and South Korea are closed for holidays.