Europe open: Stocks push higher as central bank meetings loom

European stocks rose in early trade, taking their cue from an upbeat session in Asia as investors looked ahead to a week packed full of central bank meetings.

At 0855 GMT, the benchmark Stoxx Europe 600 index was up 1%, France’s CAC 40 was 0.8% firmer and Germany’s DAX was up 1.9%.

At the same time, oil prices were in the red amid ongoing concerns about oversupply. West Texas Intermediate was down 1% at $38.10 a barrel while Brent crude was 0.9% lower at $40.04.

“European equities are continuing on from where they left off last week, trending higher at the start of a critical week for markets, with central banks yet again taking centre stage,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

“Investors will be hoping the Bank of Japan will continue supporting the market and that the Federal Reserve will at least refrain from making any decisions that might jeopardise sentiment. Amid conflicting views among FOMC members as to the strength of the US economy and the outlook for inflation, the prospect of further divergence in policy from Janet Yellen relative to other global central banks could potentially undermine the current stock market rally.”

Although Monday looks set to be a fairly quiet session, the rest of the week will be busy, with rate decisions from the Bank of Japan, the Bank of England and the Federal Reserve due on Tuesday, Thursday and Friday, respectively.

Corporate news was thin on the ground on Monday.

Banca Monte dei Paschi di Siena surged after newspaper La Repubblica said Prime Minister Matteo Renzi had asked Italian state lender Cassa Depositi e Prestiti and Intesa Sanpaolo to consider a potential acquisition of the bank.

London-listed energy group SSE edged higher after announcing the sale of its 49.9% stake in Clyde wind farm for £355m.

On the downside, French defence and security firm Safran slumped after confirming it was selling its Morpho Detection business and saying it was reviewing strategic options for its identity and security activities.

Still to come on the data front, Eurozone industrial production is at 1000 GMT.