Europe: Stocks Close Sharply Higher.

European stocks closed firmly higher at the start of the week as markets assessed the outlook on global rates and credit risks in the Eurozone. The Eurozone's STOXX 50 advanced 0.9% to 5,438 and the STOXX 600 added 0.4% to 557. The Federal Reserve is widely expected to resume interest rate cuts with a 25bps reduction. Investors will also be watching policy updates from the Bank of England, the Bank of Japan, and the Bank of Canada. Meanwhile, attention remains on France and the magnitude of deficits in its upcoming budget after Fitch downgraded its credit rating, citing rising government debt and growing political polarization. Luxury stocks surged after JPMorgan announced it sees material upside in the sector, while markets assessed the likelihood of Armani being sold to a conglomerate. LVMH jumped nearly 3% and Kering added over 5.5%. Meanwhile, Rubis soared 7.7% following reports of takeover interest from CVC Capital Partners and Trafigura.