Kingfisher jumps after raising bottomend of profit forecast
Barry Callebaut rises after Barclays sweetens ratings
STOXX 600 up 0.5

Sept 17 Reuters European stocks hit a twoweek high on Tuesday, supported by financials, as markets drew closer to an expected start to the U.S. Federal Reserve39;s monetary easing cycle that could see policymakers deliver an outsized interest rate reduction.

The continentwide STOXX 600 index was up 0.5 at 517.74 points, and Britain39;s FTSE 100 outperformed its European peers with a 0.7 jump.

All sectors were trading higher, led by a nearly 1 gain in basic resources, as greenbackpriced copper edged higher due to a softer dollar and expectations of a U.S. rate cut.

Banks and travel shares also boosted the markets, rising 0.8 each.

Investors will be squarely focused on Fed39;s decision on Wednesday, with markets now pricing in a 67 chance that the U.S. central bank could ease rates by 50 basis points.

I think there is some volatility and nervousness in the market about the growth environment, maybe about politics. But overall indeed about the central banks decisions, said Yvan Mamalet, senior economic strategist at SG Kleinwort Hambros.

I don39;t think it39;s only the Fed. I think the Bank of Japan decision at the end of the week the communication is also leading to the uncertainty and maybe to the nervousness as well.

Markets will closely monitor German sentiment survey at 0900 GMT that is expected to show a slight deterioration…