European stock markets closed the first trading day of the week with gains ahead of major central bank meetings this week, which could change tack in their monetary policy decisions with the war in Ukraine and sanctions on Russia buffeting their economies.
After a two-day meeting set to end Wednesday, the US Fed is widely expected to raise interest rates 25 basis points to begin monetary tightening, and may do at least another three rate hikes before year’s-end.
Investors will closely watch the Fed’s economic projections, which will include estimates of economic growth, unemployment, inflation, and interest rates.
At the closing, the benchmark index Stoxx Europe 600 rose 1.2% to 436.35 points.
The UK’s FTSE 100 index climbed 0.53% to 7,193.47, while Germany’s DAX 30 index gained 2.21% to 13,929.11.
In France the CAC 40 index went up 1.75% to 6,369.94 while Italy’s FTSE MIB 30 index rose 1.67% to 23,426.7 points.
Meanwhile, Russia said that if it cannot pay its foreign debt in foreign currency due to the sanctions over the war, it will pay in rubles.
The EU predicted the Russian economy will shrink by at least 15% this year due to the war and the economic sanctions from the EU, US, and other countries.
Oil briefly fell below $100 a barrel after a surge that sparked inflation fears.
Source: Anadolu Agency