Holly Ellyatt, Matt Clinch
European stocks closed higher on Monday as investors cheered a rally in oil markets and awaited the start of the Federal Reserve's policy meeting this week.
Oil rallies, Fed in focus
The pan-European Euro Stoxx 600 Index was higher with all sectors and bourses in positive territory. Oil markets were in focus with prices rising overnight after Venezuela said that OPEC and non-OPEC countries were close to reaching an output stabilizing deal, Reuters reported.
Investors were also looking ahead to a meeting by the U.S. Federal Reserve. The central bank starts a two-day meeting on Tuesday but the chances of a rate hike at this meeting are slim following a deluge of disappointing U.S. data.
"Central banks dominate the week, above all the Fed and the Bank of Japan, though there are also rate decisions in Egypt, Ghana, Indonesia, Kenya, New Zealand, Nigeria, Norway, Paraguay, Philippines, South Africa and Turkey," Marc Ostwald, a strategist at ADM Investor Services, said in a note Monday.
Mining stocks upIn stock news, basic resources surged 3 percent, led by Anglo American. The U.K.-listed miner rose nearly 6 percent, helped by a price target from Credit Suisse.
Meanwhile, shares of Weir Group rose 2.7 percent after an analyst upgrade from JP Morgan.
Rolls Royce announced Sunday that it would be cutting 200 management jobs as part of its restructuring; share were up 1.6 percent.