European markets end higher with Fed meeting, Trump-Xi summit in focus

European stocks were higher on Monday as traders look ahead to the U.S. Federal Reserve’s meeting, more earnings and signs of a rapprochement between Washington and Beijing.

The pan-European Stoxx 600 preliminarily closed Monday’s trading session 0.2% higher.

The U.K.’s FTSE 100 index moved almost 0.1% higher through the day, while France’s CAC 40 moved up over 0.1%, as Germany’s DAX gained nearly 0.3% and Italy’s FTSE MIB added 1%.

Regional markets had ended last week higher as investors reacted to the latest U.S. inflation print, the only federal data to be released during the ongoing government shutdown, and a flurry of corporate earnings reports.

Looking at individual stocks, Swiss pharmaceutical giant Novartis on Monday fell almost 0.9% after the firm announced it was buying Avidity Biosciences in a deal worth $12 billion.

Copenhagen-listed bank Sydbank was among the biggest gainers, advancing 5.5% after unveiling plans to merge with Danish lenders Arbejdernes Landsbank and Vestjysk Bank, with the new entity – named AL Sydbank – becoming one of Denmark’s five largest banks.

Barclays meanwhile gained 1.9% after Saudi Arabia said it would imminently recognize the U.K. lender’s regional headquarters in the country, with the bank having reportedly received a provisional capital market authority licence to conduct investment banking activities there.

Meanwhile, HSBC’s shares fell through the day as the bank revealed it will book at $1.1 billion provision in its third-quarter earnings due to a court ruling relating to the Bernie Madoff investment fraud case in 2009. HSBC’s earning will be released on Tuesday.