European Stocks Close Higher Near Two-Year High

European stocks rose on Monday, following a strong rally in Wall Street while investors await inflation data from the United States and a series of economic reports from the Eurozone this week. The Stoxx 600 index closed up 0.5%, nearing a two-year high recorded earlier this month. Real estate stocks led most sub-indices upward with gains of 1.6%, followed by retail stocks which rose 1.4%. Investors are closely monitoring the January Consumer Price Index report in the United States, set to be released tomorrow, for clues on the potential timing of interest rate cuts by the Federal Reserve. Stuart Cole, Chief Macroeconomic Strategist at Equiti Capital, stated that European stocks also benefited from recent gains in Wall Street. The S&P 500 index closed above 5,000 points for the first time on Friday, driven by bets on the potential of artificial intelligence. A range of economic data is also expected in the coming days from the Eurozone, including a report on Eurozone GDP growth for the fourth quarter, consumer price inflation data from Spain and other areas, and economic sentiment surveys published by the ZEW Research Institute.