European Markets Rally Amid Hopes for U.S. Interest Rate Cuts

European shares climbed as heavyweight banks and technology sectors showed gains, driven by U.S. interest rate cut expectations. Meanwhile, progress on a Ukraine peace plan also influenced markets, affecting stock movements across different sectors. Notably, the construction, automotive sectors rose, while defense stocks declined due to ongoing peace talks.

European shares edged higher on Monday, buoyed by gains in heavyweight banking stocks as investors anticipated cuts in U.S. interest rates.

The pan-European STOXX 600 rose 0.4% by the morning trade, despite having logged a steep decline the previous week. Federal Reserve's John Williams fueled expectations of a December rate cut, adding to market confidence.

Tech stocks and the construction/materials sectors also showed positive momentum, while defense stocks dipped as peace talks between the U.S. and Ukraine were underway. Investors turned attentions to the upcoming British annual budget amid ongoing economic uncertainties.

(With inputs from agencies.)