European markets close higher, extending positive momentum

LONDON — European stocks closed higher on Monday, extending positive momentum at the start of the new trading week after global markets rallied last week.

The pan-European Stoxx 600 index provisionally closed 0.64% higher, with all sectors and major bourses trading in the green. Mining and retail stocks led gains, adding 1.98% and 1.57% respectively.

Rheinmetall shares fell as much as 5% at one point on reports that Germany may halt new military aid to Ukraine. It was last seen trading down 1.9%, while other defense stocks, including Bae Systems and Kongsberg Grupp also pulled back.

Shares of Danish biotech company Zealand Pharma also fell 4.42% after CEO Adam Steensberg told Reuters last week that it was looking for a big pharma partner to help bring its weight loss drug to market.

European markets closed higher last Friday, rounding off a winning week for global stocks after recent market jitters and volatility.

U.S. stocks had posted solid gains last Friday, boosted by last Thursday's weekly jobless claims and retail sales data. That further signaled to investors that recent nervousness over a U.S. recession were overblown. On Monday, U.S. markets were last higher as the recovery rally continued.

Overnight, Asia-Pacific markets were mixed as investors awaited a slew of central bank releases and inflation data this week.

Wall Street is looking ahead to Federal Reserve Chair Jerome Powell's Jackson Hole, Wyoming, speech on Friday, searching for more clarity on the outlook for rate cuts. Minutes from the Fed's most recent meeting are also set to be released Wednesday.

There are no major earnings releases Monday.