European Shares Surge on China's Economic Stimulus

European shares reached a six-week peak, driven by miners, luxury goods, and automakers following China's announced stimuli to boost its economy. The STOXX 600 index marked gains for the eighth consecutive session. Anticipation builds for upcoming U.S. inflation data and ECB's rate decision.

On Monday, European shares rose to a six-week high, primarily powered by sectors such as mining, luxury goods, and automotive, following China's announcement of economic stimulus measures.

The pan-European STOXX 600 index increased by 0.3%, with the index making gains for the eighth straight session. Key players such as China-affected miners and automakers experienced gains of 1.6% and 0.7% respectively, with luxury brands LVMH and Richemont appreciating by over 2% each.

The German DAX saw a 0.2% rise, reaching a record level. This aligns with China's strategies for a more proactive fiscal policy and moderately loose monetary policy projected for the next year, as reported by state media, which referenced a Politburo meeting.

Traders are keenly awaiting U.S. inflation figures due on Wednesday to better understand the potential pace of Federal Reserve rate cuts. The European Central Bank is also expected to lower rates by 25 basis points come Thursday. Individual stocks saw mixed action; Banco BPM rose 2% amidst the backdrop of a report citing Credit Agricole's interest to boost its stake. Contrastingly, UniCredit saw a dip.

Shares of Hellofresh, a German meal-kit company, declined by 8.2%, amid reports of a U.S. investigation into child labor allegations. Meanwhile, CompuGroup Medical shares soared by about 30% after it announced advanced acquisition talks with CVC Capital Partners at a potential price of 22 euros ($23.24) per share.

(With inputs from agencies.)