European Shares Rally Amid Chinese Stimulus Hopes

European shares nearly hit six-week highs, driven by Chinese economic stimulus news and strong performance in mining and luxury sectors. The STOXX 600 index saw its eighth straight gain. Key influences included Chinese policy shifts, rising energy stocks, and potential US rate cuts affecting global financial markets.

European shares approached six-week highs on Monday, buoyed by strength in mining and luxury stocks as signs of renewed stimulus emerged from China. The pan-European STOXX 600 index inched up 0.1% by 1000 GMT, setting the stage for an eighth consecutive session of gains.

China announced plans to adopt a 'loosely' geared monetary policy next year to bolster its flagging economy, marking the first such policy relaxation since 2010. European miners with exposure to China jumped 2.8%, while luxury giants LVMH and Richemont each saw increases exceeding 2%. In contrast, the German DAX slipped 0.1% after briefly touching record highs.

Energy stocks rose 1.2% alongside oil prices, responding to instability in Syria following President Bashar al-Assad's ouster. However, Europe's aerospace and defense index fell by 1%, hitting a one-week low. Economists warned of potential challenges ahead despite the current market optimism, pointing to upcoming U.S. inflation data as investors anticipate the Federal Reserve's rate decision.

(With inputs from agencies.)