Energy stocks lead European markets higher ahead of inflation data

European stock markets rose on Monday, boosted by oil and gas stocks, while investors awaited the release of inflation data in the eurozone, after a report on consumer prices published last week boosted expectations that the European Central Bank will raise interest rates.

The pan-European STOXX 600 index rose 0.8 percent at 0716 GMT, after falling last week on fears of a global economic slowdown.

The euro zone banks index fell 0.4 percent after a media report indicated that the European Central Bank would consider depriving banks of exceptional profits estimated at billions of euros while raising interest rates.

Shares of British energy giant BP jumped 3.6 percent, leading gains for European oil and energy companies. The shares of travel and leisure companies came after oil and gas companies, with gains of 1.3 percent.

Producer price data is due at 0900 GMT, while the European Central Bank will publish the minutes of its last interest meeting on Thursday.

Trading volumes are generally expected to remain lower than normal due to a holiday in the US markets.

Grafton Group shares fell 5.9 percent after the building materials company announced that its CEO, Gavin Slark, would step down from his 11-year position.