European stocks gained as a boost from China considering a broad package of stimulus measures to shore up its economy fueled gains in mining and luxury stocks, while expectations of a moderation in inflation rates in the US is set to add further optimism.

The Stoxx 600 Index was up 0.5% at 8:15 a.m. in London, with tech, luxury and mining stocks leading the rally. LVMH and Hermes continued to bounce as China's potential stimulus to boost the world's second-largest economy could been a boon for the key market for expensive handbags and accessories.

The uptick in shares comes after weeks of range bound trading in Europe's main equity benchmark. Investors are closely watching meetings of the Federal Reserve and the European Central Bank this week. Consensus is for the Fed to pause its hikes.

Source : Bloomberg