LONDON: European stock markets rose solidly on Monday as traders looked ahead to a key US Federal Reserve meeting due mid-week, digested movement in the telecoms sector and kept an eye over the G8 summit in Northern Ireland.
London's FTSE 100 index of leading shares climbed 0.89 percent to stand at 6,364.40 points in midday deals. Frankfurt's DAX 30 index rallied 1.49 percent to 8,249.29 points and in Paris the CAC 40 jumped 1.84 percent to 3,875.16. Madrid's IBEX 35 index gained 1.23 percent to 8,170 points.
"European share indices have gained on mild hopes that a dovish Fed chairman Ben Bernanke will turn up to the press conference this Wednesday and remain on hold" regarding the US central bank's stimulus policy, said Ishaq Siddiqi, market strategist at ETX Capital traders.
Asian markets traded mixed on Monday, even as a weak batch of US economic data provided hope the Federal Reserve would put off announcing any winding down of its vast stimulus scheme.
In foreign exchange deals on Monday, the European single currency grew to $1.3344 from $1.3340 late in New York on Friday.
The dollar increased to 94.81 yen from 94.08 yen on Friday.
On the London Bullion Market, the price of gold fell to $1,387.13 an ounce from $1,391.25 on Friday.
"The recent volatility within global markets has brought an increased focus upon the role of central banks as a key determinant of ongoing economic progression," said Joshua Mahony, research analyst at Alpari trading group.
"Subsequently, the G8 is expected to pay particular attention to the role played by central banks in ensuring stability within the markets going forward. The increased discussions of tapering in the US, along with indecision regarding future policy at the Bank of Japan has spurred markets into an increasingly worrying spiral.
"Subsequently, leaders will discuss how the role of central banks can be utilised in a way which reduces the likeliness of another market crash," Mahony added.
On the corporate front Monday, France Telecom/Orange shares topped the Paris market, jumping 4.43 percent to 7.69 euros after French President Francois Hollande said Stephane Richard should keep his job as chief executive of the part-state-owned company, ahead of a key board meeting to decide his fate on Monday.
Richard was put under formal investigation last week for his alleged role in an arbitration ruling five years ago.
Meanwhile in Madrid, Telefonica's stock won 3.0 percent to 10.34 euros after the Spanish telecommunications group said it had not received any takeover approach from US peer AT&T Inc. following a report that Spain's government had blocked a huge takeover bid.
In French stock market deals, EADS, parent group of Airbus, gained 2.0 percent to 43.71 euros after the European planemaker announced a batch of orders at the Paris Air Show. Airbus' US rival Boeing also notched up orders for its planes worth billion of dollars (euros) at the event.
In Britain, The Co-operative Bank on Monday said it was planning to increase its capital cushion by £1.5 billion ($2.4 billion, 1.8 billion euros) to secure its future but without resorting to state aid.
The bank, which as a mutual is owned by its 4.7 million customers, said it would raise the new capital by issuing shares and bonds in exchange for existing debt, as well as from selling assets.
The Co-operative Bank said in a statement that it hoped to raise £1.0 billion this year and the remainder in 2014, while the recapitalisation plan will see a minority part of the lender listed on the stock market.
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