- German business confidence report
- US consumer confidence figures
- Federal Reserve officials speak
FTSE 100: 0.13%
CAC 40: 0.35%
FTSE MIB 0.25%
IBEX 35: 0.03%
Stoxx 600: 0.14%
European equities advanced ahead of the release of German and US data and speeches from two Federal Reserve officials.
In Germany, a report from the Ifo Institute is expected to show business confidence rose for a fifth month in September. The business climax index, based on a survey of 7,000 executives, increased to 108 from 107.5 in August, according to forecasts.
The report comes as Germany's federal election remains inconclusive.
Angela Merkel's Christian Democratic Union party won 41.5% of votes at the country's federal election on Sunday - which was not enough to secure a majority required to secure her third term as leader of Europe's largest economy.
She will need to find a coalition partner with either the Social Democrats which won 25.7% or the Green party which won 8.4%.
In the US, consumer confidence figures will be released later amid concerns over the government budget debate and the possibility of stimulus cut next month.
The index for consumer sentiment in the world's biggest economy is expected to fall to 80.3 in September from 81.5 in August.
Separately, data will show the US house price index rose 0.9% in July from 0.7% the prior month.
Policymakers are turning to economic indicators as the Federal Reserve continues to weigh up when to begin scaling back its $85bn per month in bond purchases.
The Fed shocked markets last week when it announced it would keep its stimulus unchanged.
Federal Reserve officials have been dishing out their thoughts following the decision.
New York Fed President on Monday defended the central bank's move, saying the US economy was not ready for tapering as the economy had not picked up forward momentum.
On Friday James Bullard, head of the St Louis Fed, said that a tapering could come in October and admitted that this month's decision to maintain quantitative easing was a close call.
Investors will now turn to speeches from Fed Bank of Cleveland President Sandra Pianalto and Fed Bank of Kansas President Esther George today.
Debt ceiling talks are also high on the agenda after President Barack Obama urged Congress to approve a budget to prevent a government shutdown by October 1st.
If the government fails to reach an agreement to raise the borrowing authority, which is currently limited to $16.7tn, it could lead to the first default by the US on its debt obligations.
In the UK, data will include the release of a British Bankers Association report which is anticipated to show loans for house purchase jumped to 38,950 in August from 37,200 in July.
Telefonica increases stake in Telecom Italia
Telecom Italia rallied after Telefonica SA agreed to increase its stake in the Italian phone company.
Total SA rose after Barclays raised its rating on the oil producer to 'equal weight' from 'underweight'.
Burckhardt Compression Holding declined after saying fiscal first-half net income will drop from a year ago.
Euro/dollar edges higher
The euro rose 0.12% to the 1.3509 US dollar.
Brent crude futures fell $0.334 to $107.800 per barrel on the ICE.