European stocks rose on Tuesday, supported by financial stocks, as markets approached the expected start of the U.S. Federal Reserve’s monetary easing cycle, which could see policymakers implement a massive rate cut.
At 0713 GMT, the STOXX 600 continental index .STOXX was up 0.6 percent at 518.16 points, while Britain’s FTSE 100 .FTSE was outperforming its European peers with a jump of 0.7 percent.
All sectors were trading higher, led by a nearly 1 percent rise in financial stocks .SX7P and a 0.8 percent jump in bank stocks.
Investors will be focused on the Federal Reserve’s decision on Wednesday, as markets now price in a 67 percent chance that the US central bank could ease rates by 50 basis points.
In economic data, markets will be closely watching the German sentiment survey due at 0900 GMT, which is expected to show a slight deterioration in September, and US retail sales, due at 1230 GMT, are forecast to have contracted in August on a monthly basis.
European Central Bank supervisor Claudia Buch and board members Elizabeth McCaul and Frank Elderson will speak later in the day.
Among stocks, Kingfisher KGF.L was the biggest gainer, rising 6.6 percent after the European home improvement retailer raised the low end of its full-year profit outlook.
Shares in Barry Callebaut BARN.S rose 6.2% after Barclays upgraded the stock to “overweight” from “underweight”.
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