- French stocks hit three-week high despite Fitch credit downgrade
- Defence stocks hit record high on geopolitical tensions
- UBS up; report says bank mulls move to US to avoid new rules
- Orsted slides after sets 67% discount for $9.4 bln rights issue
Sept 15, Reuters - European shares touched a three-week high on Monday, lifted by financials ahead of a pivotal week of central bank meetings, including the U.S. Federal Reserve's, while Rubis advanced after a report on the potential sale of the French fuel retailer.
The pan-European STOXX 600 was up 0.5% at 557.78 points, as of 0812 GMT, with rate-sensitive banks gaining 0.9%.
Among financials, UBS rose 1.7% after reports of the lender mulling a move to the United States in response to proposals from the Swiss government on new capital requirements.
Several central banks will announce their policy decisions this week, including those in the UK, Japan and Canada, but the spotlight will be on the Fed.
Global market sentiment has been buoyant on expectations that the Fed will respond to signs of U.S. labour market weakness with at least a 25-basis-point cut on Wednesday - its first potential dovish monetary policy move this year.
A report of bids for Rubis from CVC Capital Partners and Trafigura lifted the fuel retailer's shares 7.2% to the top of the STOXX 600 index. The French company is valued at about $3.5 billion.
Germany's Rheinmetall rose 2.1% after it said on Sunday it will buy NVL, the military arm of Luerssen Group.
The broader defence sector rose 1.2% to lead sectoral gains as geopolitical tensions flared in eastern Europe.
Offshore wind developer Orsted slid 2.4% after pricing its $9.42 billion rights issue at a 66.7% discount to the stock's last close.
Supermarket group Sainsbury's gained 5.1% after terminating talks with Chinese e-commerce giant JD.com over selling the Argos general merchandise retailer.
Reporting by Tristan Veyet in Gdansk and Johann M Cherian in Bengaluru; Editing by Janane Venkatraman and Sonia Cheema
Source: Reuters