(fxcue news) - European stocks closed higher on Tuesday amid optimism the Federal Reserve will announce an interest-rate cut on Wednesday. Investors also looked ahead to inflation data from the U.K., and the Bank of England's monetary policy announcement, due on Wednesday and Thursday, respectively. The Fed is widely expected to lower interest rates, but the focus is on the size of the rate cut, and the central bank's accompanying statement. The U.K. CPI report may significantly influence market speculation for BoE's interest rate path for the last quarter of the year. The pan European Stoxx 600 climbed 0.4%, the U.K.'s FTSE 100 gained 0.38%, Germany's DAX ended 0.51% up, and France's CAC 40 settled higher by 0.51%, while Switzerland's SMI closed with a gain of 0.31%. Among other markets in Europe, Finland, Greece, Iceland, Netherlands, Poland, Portugal, Russia, Spain, Sweden and Turkiye closed on firm note. Austria and Belgium edged up marginally, while Denmark and Norway closed weak. In the UK market, Kingfisher surged 11.25% after raising the lower end of its fiscal 2025 profit guidance. EasyJet climbed more than 6%. JD Sports Fashion, IAG, Ashtead Group, Burberry Group, Mondi, Howden Joinery, Prudential, Marks & Spencer, Diageo, Croda International, Pershing Square Holdings, Whitbread, Frasers Group and Entain ended higher by 2 to 3.5%. BAE Systems ended down 4.7%. British American Tobacco closed 2.36% down, and Hikma Pharmaceuticals ended nearly 2% down. Pearson, Segro, Imperial Brands and GSK also ended notably lower. In the German market, Zalando rallied more than 7%. Siemens Energy gained about 4.3%. Daimler Truck Holding, Infineon, Bayer, Deutsche Bank, Siemens, Continental and Sartorius advanced 2 to 3.5%. BASF, HeidelbergCement, Brenntag, Volkswagen, Siemens Healthineers, Symrise, Fresenius and Mercedes-Benz climbed 1 to 2%. Rheinmetall lost nearly 6.5%. MTU Aero Engines closed lower by about 2.5%, while Hannover Rueck and Munich RE, both closed down by about 1.6%. In the French market, STMicroElectronics, Saint-Gobain, Edenred and ArcelorMittal gained 2 to 3%. BNP Paribas, Kering, Renault, Hermes International, Societe Generale, Schneider Electric, Capgemini, Legrand, Teleperformane, Bouygues and Accor closed higher by 1 to 1.8%. Thales ended down 3.8%. Essilor closed lower by about 1.25%, while Danone ended nearly 1% down. In Switzerland, shares of chocolate maker Barry Callebaut rallied sharply after Barclays raised its rating on the stock to "overweight" from "underweight". In economic news, German investor confidence declined sharply again in September as hopes of swift improvement in economic situation fade, survey results from the think tank ZEW showed. The ZEW Indicator of Economic Sentiment fell to 3.6 from 19.2 in August. The score was the lowest since October 2023 and also well below forecast of 17.2.