LONDON, Oct 11 (Reuters) - European shares closed at a two-week high on Monday, lifted by persistent speculation the Federal Reserve would step up efforts to support the economy, while investors awaited U.S. corporate earnings for direction.
The pan-European FTSEurofirst 300 index of top shares provisionally closed 0.3 percent higher at 1,073.63 points in a subdued session due to the Columbus day holiday in the United States, where the stock market was trading but the bond market remained closed.
"Markets are in a good mood but volumes are low because of Columbus Day. Apart from that we're waiting for corporate results this week for the next move," said Simon Clark, senior trader at ETX Capital.
Weak economic data from across the Atlantic in recent weeks, including lower-than-expected U.S. payrolls numbers on Friday, underscored expectations that the Fed will embark on further quantitative easing measures to bolster the economic recovery, putting some pressure on the U.S. dollar.
Individual gainers in Europe included Franco-Belgian financial group Dexia, which added 6.9 percent ahead of an investor day on Tuesday which could shed light on a possible tie up. (Reporting by Harpreet Bhal)