European equities were set to start higher on Monday as risk sentiment improved, with investors looking ahead to an expected rate cut from the US Federal Reserve this week. The Bank of England is meanwhile expected to hold policy steady on Thursday as inflation edges higher, with rate cuts seen resuming in the coming quarters. On the data front, traders will watch the latest Eurozone trade balance and German wholesale prices for August. No major corporate earnings are due today. In premarket action, Euro Stoxx 50 futures rose 0.3% while Stoxx 600 futures added 0.1%.