Europe close: Stocks move higher with US CPI numbers, Fed in focus

European shares rose on Monday, with investors eyeing key inflation numbers due out on Tuesday, followed by the results of the Federal Reserve's policy meeting the next day.

"It has been a notably positive start to a busy week for financial markets. Stocks have opted to continue their move higher for the time being, expecting US inflation to cool slightly and the Fed to leave rates unchanged," said IG chief market analyst Chris Beauchamp.

"Should those assumptions prove wrong we can expect significant volatility across stocks and in the US dollar, with the latter likely to see further upside."

The pan-European Stoxx 600 index was up 0.12% to 460.58, alongside a 0.93% advance on the German Dax to 16,097.87.

Italy's FTSE Mib meanwhile was 0.91% higher to 27,410.47.

In equity news, shares in Georg Fischer gained even as the industrial supplier said it has made an all-share offer to buy Finnish peer Uponor for €2.1bn as it looks to boost its water- and flow-solutions business.

Ocado jumped after BNP Paribas Exane upgraded the online grocer to 'neutral', with the broker saying that the company's outlook and market sentiment now appear “much better aligned”.