- Summers out of Fed Chair race
- Syria tensions subside
- Eurozone inflation cools
FTSE 100: 0.83%
CAC 40: 0.87%
FTSE MIB: 0.66%
IBEX 35: 0.67%
Stoxx 600: 0.74%
European equities climbed after Lawrence Summers bowed out of the race for Federal Reserve Chairman, making way for Fed Vice Chair Janet Yellen to take the top job.
Yellen is a firm favourite to succeed Ben Bernanke as investors expect she will support a slower reduction of stimulus.
The Fed will announce whether it will begin scaling back of its $85bn per month in bond purchases at its two-day policy meeting which kicks off on Tuesday.
The central bank has said it will begin tapering some time this year so long as it feels the US economy and jobs market has recovered sufficiently.
"The ability of the economy to show sufficient signs of improvement within the jobs markets has been a core driver of expectations and the trends appear to point towards the economy being just about accommodative to such a move," said Market Analyst Craig Erlam from Alpari.
Meanwhile, concerns over a potential military attack on Syria abated over the weekend after the US and Russia agreed that President Bashar al-Assad's regime must submit details of its stockpile of chemical weapons within a week. The weapons will then be removed and destroyed before mid-2014.
US President Barack Obama has insisted that if diplomacy failed he will push for military force against Assad's government which was accused of using chemical weapons against civilians last month.
"With the prospects of an imminent military conflagration on Syria diminishing into the distance after the weekend agreement between the US and Russia on Syria's chemical weapons, the markets would appear to have one less thing to worry about as markets begin a new week, with all eyes on this week's Federal Reserve meeting, and whether or not we will see the beginning of the long anticipated tapering programme", said Senior Market Analyst Michael Hewson from CMC Markets.
Eurozone inflation eases
Eurozone inflation cooled in August according to data published by Eurostat on Monday, even as the region's central bank head reiterated that low rates continued to be warranted for an extended period.
The annual rise in consumer prices across the single-currency region settled at 1.3% in August, down from 1.6% in July. The annual rate in August 2012 was 2.6%.
Monthly inflation meanwhile was 0.1%. The annual core consumer price index remained at 1.1%.
European Central Bank (ECB) President Mario Draghi said he is "encouraged" by the fact that inflation expectations remain "firmly anchored" and repeated the monetary authority's promise to keep rates at record lows.
"Given the overall subdued outlook for inflation extending into the medium term, the ECB's Governing Council expects the key ECB interest rates to remain at present or lower levels for an extended period of time," Draghi said in a speech in Berlin on Monday.
Airlines stocks rise as oil prices
easyJet and International Consolidated Airlines (IAG) soared as the price of oil fell on easing fears over an imminent strike in Syria.
Brent crude futures dropped $1.944 to $109.570 per barrel on the ICE.
H&M gained after the clothing retailer said revenue at stores open at least a year increased 4% year-on-year in August.
Petrofac rallied after the oil and gas services provider won a $120m contract to operate and manage two training facilities for Malaysian oil major Petronas.
K+S jumped following news Kogan, a longtime ally of President Vladimir Putin, is seeking to buy out Uralkali's three main shareholders.
The euro edged up 0.38% to the 1.3345 US dollar.