(fxcue news) - European stocks traded sharply higher on Monday ahead of a busy week, with inflation readings across Europe, U.S. and a preliminary reading of euro zone third quarter GDP awaited. The pan European STOXX 600 was up more than 1 percent at 511.91 after falling 0.7 percent on Friday. The German DAX rallied 1.2 percent after Chancellor Olaf Scholz has said that he is open to holding a trust vote and subsequent elections sooner than planned. France's CAC 40 climbed 1 percent and the U.K.'s FTSE 100 was up 0.7 percent. The single European currency fell marginally below the level of 1.07 at the opening of the new week as Donald Trump edged closer to securing full control of the U.S. Congress. Defense companies traded higher on expectations of increased defense expenditure in the U.S and other developing countries during Trump's presidency. Sweden's SAAB rallied 3.4 percent, Italy's Leonardo added 2.6 percent and U.K.'s Rolls-Royce Holdings climbed 2.6 percent. Shares of Aquis Exchange more than doubled after Swiss stock exchange operator SIX Group said it has reached an agreement to acquire the London-based company in a major deal. NatWest Group surged nearly 2 percent after it agreed to buy back £1 billion of shares from the government. GPE climbed 1.1 percent after the real estate group made a £19M office acquisition in Fitzrovia. Specialty chemicals group Croda International surged 4.5 percent after reporting sales growth in Q3 and confirming its FY24 profit outlook. China-related luxury firms LVMH, Kering and Hermes International all rose about 1 percent in Paris after China announced a five-year package totaling 10 trillion yuan ($1.4 trillion) to tackle local government debt problems. German automotive and industrial supplier Continental AG jumped 5.4 percent after third-quarter core profit topped expectations. Hannover Re rallied 4 percent after the reinsurer raised its full-year 2024 profit target to €2.3bn. Steel manufacturer Salzgitter fell 2.4 percent after the company reported net loss for the first nine months of the financial year 2024 of 197.7 million euros, compared to prior year's profit of 193.7 million euros.