European stocks rose in a broad-based rally on Monday as investors anticipated data this week to clarify economic prospects amid support from major central banks for tightening monetary policy. The Stoxx 600 index closed up 0.8 percent after experiencing its biggest one-day drop in three weeks on Friday, which was a decline of 1 percent. This drop followed comments from U.S. Federal Reserve Chair Jerome Powell, which dampened investor confidence in the idea that interest rates had peaked.
Investor focus is now on key inflation data, including figures from the United States and the Eurozone this week. Investors are also awaiting an upcoming meeting between U.S. President Joe Biden and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco.
Italian bank stocks rose 2.8 percent, boosted by an 8.6 percent jump in Monte dei Paschi shares after Fitch upgraded its rating to "BB" with a stable outlook on Friday, while Deutsche Bank upgraded its rating to "Buy" from "Hold" on Monday. Energy stocks increased by 1.3 percent, led by a 6 percent surge in Siemens Energy shares.
