European stocks extend gains post-IFO, Central banks’ events eyed

The stocks on the European bourses built on the initial gains and extended further north, sentiment was lifted by upbeat business surveys from Germany, which showed that the investors shrugged-off Brexit anxiety. The headline Business Climate Index fell to 108.3 points in July, from 108.7 booked a month before, while the market had forecast 107.4 points.

Further, a bunch of positive corporate news also buoyed the sentiment around the region’s indices, with the travel sector benefiting the most after the shares of budget airline Ryanair rallied over 6% after it said net profit for the April to June quarter rose 4%.

Currently, Germany's DAX 30 index now rises +1% to 10,250, while the UK's FTSE index trades +0.16 higher at 6,741. Among other European indices, the French CAC 40 index advances +0.75% to 4,414, while the pan-European Euro Stoxx 50 index gains +0.75% to 2,993 points.

Going forward, investors will closely track two leading central banks’ policy meeting this week, with Fed expected to keep rates on-hold, while the BOJ is likely to introducing fresh easing measures this Friday.