Tourists are visiting the center of Munich in Munich, Germany, on July 21, 2024.
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LONDON — European stocks were higher Tuesday, as upcoming central bank meetings remained in focus.
The pan-European Stoxx 600 index was 0.72% higher by 12:40 p.m. London time, with all major bourses and virtually all sectors in the green. Banks were up 1.37% while autos were 1.28% 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 pared earlier gains to trade nearly flat.
Elsewhere, retail stocks added 2.57%, led by British home improvement firm Kingfisher, which jumped 8.6% after it raised the lower end of its profit range on improved sales.
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.
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. U.S. futures were little changed.
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.