European shares soared to the highest level in three months on Monday amid expectations the European central Bank would boost is stimulus this week.
The euro is set for its biggest monthly drop against the U.S. dollar, while the difference between German bund yields and their U.S. counterparts widened due to the divergence in monetary policy between the Fed and the ECB.
The ECB’s meeting on Thursday is highly expected to witness a boost in ECB stimulus amid the pursuit of European policymakers to shore inflation to its target.
Europe STOXX 600 surged 0.40 percent, while STOXX 50 index retreated 0.76 percent.
DAX 30 added 0.96 percent to 11,402.36 and France’s CAC 40 edged up 0.66 percent to 4,962.91. Britain’s FTSE 100 ascended 0.05 percent to 6,378.14.