European stocks close higher as global markets await more U.S. inflation data; Stoxx 600 up 1.8%

Investment bank Goldman Sachs predicts European gas storage will reach over 90% of its capacity this summer, despite a halt in Russian supplies. 

The latest data compiled by industry group Gas Infrastructure Europe shows that the European Union's overall storage levels are at an average of over 83% full.

— Hannah Ward-Glenton

U.S. stocks opened higher Monday as investors looked ahead to key inflation data to be released this week.

The Dow Jones Industrial Average was up 0.4% at market open, while the S&P 500 and the Nasdaq both traded around 0.7% higher.

— Karen Gilchrist

Shares of Swedish outdoor retailer Thule Group fell more than 14% to the bottom of the Stoxx 600 by early afternoon deals, after the company issued a profit warning on Sunday, citing falling demand in the bike retail sector.

At the top of the European blue chip index, British private equity firm Bridgepoint Group jumped 9%.

Shares in Berlin-based meal kit company Hellofresh fell more than 2% during morning trading in Frankfurt, as Reuters reported the company was working with the U.S. Department of Agriculture and one of its suppliers following a public health alert.

The wider DAX index gained 1.6%.

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— Jenni Reid

Sterling fell to its weakest point against the euro since February 2021 on Monday, as the common currency strengthened on the back of hawkish messaging on monetary policy from the European Central Bank.

The euro was trading at just over £0.87 by mid-morning in Europe, up 0.6% on the day.

- Elliot Smith

The euro jumped to a three-week high against the U.S. dollar early on Monday after hawkish messaging from the European Central Bank on monetary policy tightening.

The common currency was up 1.3% against the greenback shortly after 9 a.m. London time, changing hands for around $1.017.

Sterling also advanced, and was last seen trading up 0.8% against the dollar at $1.168.

The weaker dollar may have been helping U.S. futures on Monday as the greenback's march to the highest in decades vs. a basket of currencies recently has weighed on share prices. A strong dollar erodes the value of revenue for U.S. multinationals.

- Elliot Smith

Shares of Swedish outdoor retailer Thule Group fell more than 8% to the bottom of the Stoxx 600 in early trade after the company issued a profit warning on Sunday, citing falling demand in the bike retail sector.

At the top of the index, Uniper shares climbed more than 7% as investors looked to pick up the stock at historic lows after its recent plunge on the back of Russian gas supply concerns.

- Elliot Smith

The British economy grew by 0.2% month-on-month in July, below a consensus forecast of 0.4%, as the country's soaring inflation showed signs of straining economic activity.

The Office for National Statistics (ONS) noted a particular fall in power production, and said anecdotal evidence suggested that "there may be some signs of changes in consumer behavior and lower demand in respond to increased prices."

New Prime Minister Liz Truss last week announced a cap on household energy tariffs, which is expected to reduce the risk of an economic downturn at the expense of further strain on public finances.

- Elliot Smith

The British pound has slid against the U.S. dollar over the past year, hitting a 37-year low against the greenback last week — and it could weaken even further, according to analysts.

DZ Bank's Sonja Marten warned that GBP/USD is a currency pair that tends toward large swings, and gave a pretty bearish forecast.

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— Zavier Ong

The U.S. Department of Commerce plans to publish new regulations related to restricting exports of chipmaking equipment to Chinese factories that produce advanced semiconductors, Reuters reported, citing people familiar with the matter.

The rules will be based on letters sent to KLA, Lam Research and Applied Materials earlier this year, when they were informed that government-issued licenses would be needed to sell such equipment to buyers that make chips with sub-14 nanometer processes.

The new regulations would likely include additional actions against China, sources told Reuters, adding they could be changed and published later than expected.

—Jihye Lee

As fears over the global energy supply came back into focus last week, Goldman highlighted six oil and gas themes which it said looked attractive into the year end.

The investment bank sees total returns of 15% for large-cap stocks under its oil and gas coverage and names six themes to watch into the year end.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 22 points higher at 8,442, Germany's DAX up 26 points at 18,896, France's CAC 7 points higher at 8,244 and Italy's FTSE MIB up 64 points at 35,091, according to data from IG.

Earnings are due from Swiss Re, Zurich Insurance, Siemens, Deutsche Telekom, BT and EasyJet, among others. There are no major data releases.

— Holly Ellyatt