Investing.com - European stocks were mixed to higher on Monday, as markets continued to digest the Federal Reserve's decision to leave interest rates on hold last week.
During European morning trade, the EURO STOXX 50 added 0.18%, France’s CAC 40 gained 0.36%, while Germany’s DAX 30 slid 0.65%.
Equity markets found support after the Fed kept interest rates unchanged last Thursday, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy.
The Fed said it wanted to see "some further improvement in the labor market," and be "reasonably confident" that inflation will increase before hiking rates.
Elsewhere, Alexis Tsipras became Greece's prime minister once again after a decisive victory in a snap election on Sunday. He will return to power in a coalition government with the right-wing Independent Greeks.
Financial stocks were broadly higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) rallied 1.22% and 0.96%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) gained 0.43% and 0.49%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) advanced 0.57% and 1.43% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) climbed 0.88% and 1.43%.
On the downside, German carmaker Volkswagen (XETRA:VOWG) dove 14.87% following reports the company could be fined up to €18 billion by U.S. authorities, as some diesel models are said to have misled buyers about emissions.
In London, FTSE 100 rose 0.29%, as U.K. lenders tracked their European counterparts higher.
Shares in the Royal Bank of Scotland (LONDON:RBS) and Barclays (LONDON:BARC) gained 0.28% and 0.32% respectively, while Lloyds Banking (LONDON:LLOY) climbed 0.50% and HSBC Holdings (LONDON:HSBA) jumped 1.01%.
Meanwhile, RSA Insurance led losses, with shares sinking 21.24% after Zurich Insurance said it was abandonning its takeover bid for the company.
In the mining sector, stocks were mixed. Glencore (LONDON:GLEN) dropped 0.40% and Bhp Billiton (LONDON:BLT) lost 0.46%, while Rio Tinto (LONDON:RIO) added 0.13% and Fresnillo (LONDON:FRES) edged up 0.16%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.21% fall, S&P 500 futures signaled a 0.24% loss, while the Nasdaq 100 futures indicated a 0.31% decline.