By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets rose on Monday,
tracking Asia stocks higher and with investors focusing on whether
the U.S. Federal Reserve will make any changes to its monetary
policy when it meets later this week.
The Stoxx Europe 600 index gained 0.8% to 293.65, after posting
a fourth straight week of losses on Friday.
Shares of Royal Philips NV (PHG) added 3.3% after Deutsche Bank
lifted the electronics firm to buy from hold.
On a more downbeat note, shares of Saipem SpA sank 21% after the
oilfield-services firm late Friday cut its 2013 guidance because of
escalating difficulties in Algeria. The Italian company now expects
a full-year loss between 300 million euros ($400 million) and
EUR350 million, down from an earlier forecast of profit of around
EUR450 million.
For the broader stock markets, investors were mainly concerned
about the U.S. Fed and whether it will start tapering its
aggressive bond-buying program or raise rates at its two-day
meeting ending Wednesday. Most analysts expect the central bank to
keep interest rates low and maintain its $85-billion-a-month asset
purchases, but don't rule out the possibility of a reduction in the
program later in the year.
Global stock markets climbed to multiyear highs in May, boosted
by central-bank liquidity, but comments from Fed Chairman Ben
Bernanke about potentially tapering off in coming months sparked a
selloff.
U.S. stock futures pointed to a higher open on Wall Street.
Stocks in Asia closed mostly higher with the Japanese Nikkei 225
index rallying 2.7% on the back of a weaker yen.
Back in Europe, shares of Cie. Financière Richemont SA (CFRUY)
put on 2.8% after HSBC lifted the luxury goods firm to overweight
from neutral.
Among country-specific indexes, Germany's DAX 30 index added
1.3% to 8,237.01 and France's CAC 40 index gained 1.4% to
3,855.84.
The U.K.'s FTSE 100 index picked up 0.7% to 6,352.88.
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