LONDON — European stocks closed higher Tuesday, rebounding from a negative session at the start of the week as upcoming central bank meetings remained in focus.
The pan-European Stoxx 600 index provisionally closed 0.42% higher, trimming earlier gains. Banks were up 1% while autos were 0.96% higher.
Shares of Commerzbank hit a 12-year high on reports from Bloomberg that UniCredit is seeking approval from the European Central Bank to build up a 30% stake in the company. Shares later eased to close near-flat.
Elsewhere, retail stocks added 2.8%, led by British home improvement firm Kingfisher, which jumped more than 10% after it raised the lower end of its profit range on improved sales.
Get top local stories in Philly delivered to you every morning. Sign up for NBC Philadelphia's News Headlines newsletter.
Matthew Donen, senior equity analyst at Morningstar, said the results demonstrated efforts by management to keep "costs in check," and noted that strong performance in the U.K. and Poland had helped offset challenges in France, where a restructuring is underway.
Investors are awaiting key monetary policy decisions the week, with the U.S. Federal Reserve widely expected to cut rates for the first time in four years on Wednesday. Market bets on a 50 basis point rate reduction from the Fed rather than the 25 basis point cut previously expected have jumped to over 50% this week, leaving an unusual level of uncertainty surrounding the decision.
U.S. stocks were higher in morning deals, with the S&P 500 hitting a record high.
Money Report
Policymakers at the Bank of England and the Bank of Japan also meet on Thursday and Friday, respectively.
Asia Pacific markets were mixed on Tuesday, with Japan's Nikkei 225 dropping over 2% as the yen strengthened ahead of the Fed decision.
Back in Europe, German economic sentiment darkened slightly in September in another sign of woe for the country's troubled economy, the ZEW Economic Sentiment Index showed Tuesday.
