EU STOCKS rise Monday

European stock markets rose on Monday, tracking Asia stocks higher and with investors focusing on whether the U.S. Federal Reserve will make any changes to its monetary policy when it meets later this week.

Most analysts expect the central bank to keep interest rates low and maintain its $85-billion-a-month asset purchases, but don’t rule out the possibility of a reduction in the program later in the year.

Also EU stocks will watch the summit of the Group of Eight major economies being held on Monday and Tuesday in Northern Ireland.

Euro-zone developments have been overshadowed by those in Japan and the U.S., but the market “may see some fireworks” this week with the release of Germany’s ZEW economic sentiment indicator and the preliminary reading of purchasing managers’ indexes, which will be the first June economic readings for the euro zone.

The Stoxx Europe 600 index gained 0.8% to 293.65, after posting a fourth straight week of losses on Friday.

Shares of Royal Philips NV added 3.3% after Deutsche Bank lifted the electronics firm to buy from hold.

Shares of Cie. Financière Richemont SA put on 2.8% after HSBC lifted the luxury goods firm to overweight from neutral.

Telefonica SA advanced 2.9% as El Mundo reported that Spain blocked AT&T Inc.’s takeover bid for the company because the Telefonica is “strategic” to Spain’s economy. Spokeswoman Marisa Navas said the company didn’t receive any formal or informal bid, indication or approach by AT&T.

ABB (ABBN) rose 1.4% after the company named Ulrich Spiesshofer, who has earlier overhauled the company’s robotics division, as CEO. He will take over after Joe Hogan steps down on Sept. 15.

On a more downbeat note, shares of Saipem SpA sank 21% after the oilfield-services firm late Friday cut its 2013 guidance because of escalating difficulties in Algeria. The Italian company now expects a full-year loss between 300 million euros ($400 million) and €350 million, down from an earlier forecast of profit of around €450 million.