Europe Markets

European markets close slightly higher after week of losses

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Key Points
  • The pan-European Stoxx 600 climbed 0.3%, with oil and gas stocks adding 2.8% to lead the gains.
  • Traders continued to digest the ECB's decision to slow down bond buying under its pandemic stimulus program.

LONDON — European stocks closed higher on Monday, with investors continuing to weigh up the European Central Bank's latest policy decision and inflation data.

The pan-European Stoxx 600 provisionally ended the session up 0.3% after the benchmark slumped 1.2% last week. Oil and gas stocks led the gains on Monday, adding 2.8%.

European traders continued to digest the European Central Bank's decision last week to slow down bond-buying under its pandemic emergency purchase programme (PEPP) in response to higher inflation and stronger GDP growth across the euro zone.

The ECB also modestly revised up its medium-term inflation forecasts, a move that followed data showing euro zone inflation notched a decade high of 3% in August.

In terms of individual share price movement in Europe, French-American oil and gas company TechnipFMC climbed 7% to lead the Stoxx 600 after agreeing to sell a stake in spin-off firm Technip Energies.

At the bottom of the index, Swedish pulp and paper company SCA fell 6.7%.

On Wall Street, the Dow Jones Industrial Average gained Monday, rebounding from a five-day losing streak. The Dow jumped about 280 points, or 0.8%. The S&P 500 was up 0.2%. The Nasdaq Composite fell 0.3%.

This coming week, global investors will be keeping an eye on the U.S. consumer price index for August, set to be released Tuesday; economists surveyed by FactSet are expecting the reading to show that consumer prices jumped 5.3% on an annual pace in August. Retail sales data will be released later in the week.

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- CNBC's Ryan Browne to this market report.