BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Continued optimism about U.S.-China trade deal and the European Union's decision to grant a three month extension to the U.K. to leave the bloc aided investor sentiment and pushed up stock prices in European markets on Monday.
Still, buying interest was somewhat subdued in most of the markets due to lingering worries about global economic slowdown.
A notable drop in HSBC's earnings and the bank's warning about the challenging environment hurt sentiment and limited markets' upside.
Investors were looking ahead to the upcoming monetary policy meeting of the Federal Reserve on Tuesday and Wednesday. The U.S. central bank is widely expected to cut its policy rate by 25 basis points. The bank's accompanying statement is likely to provide clues about future rate cuts and an insight into its outlook on near term economic growth.
The pan European Stoxx 600 ended up 0.36%. Among the major indices, the U.K.'s FTSE 100 advanced 0.29%, Germany's DAX gained 0.46% and France's CAC 40 closed up 0.31%, while Switzerland's SMI ended 0.31% up.
Among other markets in Europe, Austria, Belgium, Denmark, Finland, Iceland, Italy, Norway, Poland, Portugal and Sweden closed with sharp to moderate gains.
Russia and Turkey declined, while Ireland, Netherlands and Spain ended flat.
In the British market, Antofagasta gained nearly 4% and 3i Group ended 3% up. Micro Focus, Spirax-Sarco, Intertek, Ashtead Group, Whitbread, Glencore, GlaxoSmithKline and Marks & Spencer gained 2 to 2.8%.
On the other hand, HSBC declined 3.7%. After posting a 16% drop in third quarter earnings, the bank has warned it would have to undertake costly restructuring amid a slowing global business environment.
NMC Health ended more than 4% down. Imperial Brands, Lloyds Banking, Hiscox, Unilever, Informa and Fresnillo lost 1.2 to 2.2%.
Cairn Energy shared ended more than 8% down after the company issued an update on its proceedings against India under the U.K.-India Bilateral Investment Treaty.
In France, Michelin rallied nearly 5%. STMicroElectronics gained 2.3%, while ArcelorMittal, Dassault Systemes, Schneider Electric, Renault and Vivendi gained 1.3 to 1.6%.
Bouygues, Vinci, Carrefour and Technip ended notably lower.
In the German market, Infineon gained more than 3%, Continental advanced 2.4% and Volkswagen ended higher by about 2%. Adidas, Daimler and Fresenius also closed on a firm note.
Covestro declined 2.8% after the company narrowed its FY19 outlook range after reporting a weaker-than-expected third-quarter net income.
In Brexit news, the European Union has granted the U.K.'s request for a Brexit deadline. extension.
The move by the EU, which delays Brexit until January 31st, was widely expected but still removes the risk of a damaging no-deal split on Thursday.
On the trade front, U.S. and Chinese officials reportedly said they are 'close to finalizing' some parts of a 'phase one' trade deal after high-level telephone discussions on Friday.
U.S. President Donald Trump has said he plans to sign the deal with Chinese President Xi Jinping at a summit in Chile next month.
In economic news from Europe, German import prices decreased at a slower than expected pace in September, data from Destatis revealed Monday.
Import prices dropped 2.5% year-on-year in September, following a 2.7% fall in August. This was slower than the 3% decline economists had expected.
On a monthly basis, import prices advanced 0.6% offsetting a 0.6% drop in August. Prices were forecast to rise 0.1%.
The UK retail sales volume declined for the sixth consecutive month in October and retailers' stock levels in relation to expected sales reached a record high, the latest Distributive Trends Survey from the Confederation of British Industry showed Monday.
The retail sales balance fell to -10% in October. Retailers expect sales volume to rise marginally next month with a balance of 1% forecasting sales growth.
Sales decreased for the sixth straight month, which was the longest period of decline since the financial crisis.
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