European markets closed marginally higher Monday as investors geared up for a busy week in U.S. politics, with the midterm elections, as well as the latest consumer inflation report.
The Stoxx 600 index ended up 0.3% provisionally, building on a busy week for markets last week, as central banks continued aggressive monetary tightening in a bid to rein in inflation.
Travel and leisure stocks led gains, closing up 1.6%, while food and beverage stocks dipped 0.5% by mid-afternoon.
The Bank of England implemented a 75 basis point hike to interest rates on Thursday but warned that the U.K. economy faces its longest recession on record, and the U.S. Federal Reserve also opted for a 75 basis point hike on Wednesday.
Overnight into Monday, Hong Kong stocks led gains in the Asia-Pacific as China's trade data fell far short of expectations, marking the first annual decline in exports since May 2020.
U.S. stocks, meanwhile, were mixed in early deals as investors looked ahead to Tuesday's midterm election, which will determine which party will control Congress and could affect the direction of future spending.
Democrats currently control the House, and have a majority in the Senate. A Republican sweep could signal greater support of oil and gas companies.
On the economic front, investors are anticipating Thursday's U.S. consumer price index report will give further insight into the Federal Reserve's efforts to squash inflation. A hot inflation report could signal to investors that a pivot from higher interest rates, for longer, could be further away than expected.
— CNBC's Sarah Min contributed to this report.